Fred’s reports net sales, same-store sales up in Q1
Memphis, Tenn. Fred’s reported that its first-quarter total sales for its first quarter increased 3% to $471.6 million, compared with $458.4 million for the same period last year. The company also reported same-store sales increased 2.2% on top of a 2.8% increase in the first quarter last year.
However, net income totaled $8.2 million compared with net income of $8.6 million in the year-earlier period.
“Although we are still in the early stages of implementing current initiatives, the progress to date has been encouraging, along with the positive feedback we have received from our customers on Fred’s new direction,” said CEO Bruce A. Efird. “Looking forward, we will continue investing in our prototype stores, increasing the marketing of our Core 5 departments, and implementing the new merchandising layout in more than 200 stores this year. With the passage of the new healthcare bill, we see both opportunities and challenges, and remain committed to growing our pharmacy business — both organically and through acquisitions.”
Fred’s gross profit for first quarter 2010 increased 6% to $136.9 million, from $129.0 million in the prior-year period. Gross margin for the quarter increased to 29.0%, compared with 28.1% in the same quarter last year. The improvement in gross margin for the quarter resulted from an improved sales mix, higher pharmacy department margins, and lower store shrinkage.
Operating income for the quarter decreased to $13.2 million or 2.8% of sales, from $13.7 million or 3.0% of sales in the prior-year period.
During the first quarter, Fred’s opened one new store and five new pharmacies.
RadioShack extends partnership with Lance Armstrong
FORT WORTH, Texas RadioShack’s chairman and CEO Julian Day announced at the company’s annual meeting on May 24 that RadioShack has expanded its partnership with Lance Armstrong and the Livestrong foundation. The company said it will introduce exclusive Livestrong-branded products and accessories in all stores beginning in July.
DSW sees improved sales, earnings for Q1
COLUMBUS, Ohio DSW announced net income of $30.2 million on net sales of $449.5 million for the first quarter ended May 1, compared with net income of $7.1 million on net sales of $385.8 million for the first quarter ended May 2, 2009. Same-store sales increased 16.2% versus a decrease of 4.7% last year.
Diluted earnings per share were 67 cents for the first quarter of fiscal 2010 compared with diluted earnings per share of 16 cents last year.
The company reiterated its estimate of an increase in annual comparable-store sales of approximately 6% to 8% and annual diluted earnings per share of approximately $1.65 to $1.75 for fiscal 2010. The estimated year-over-year earnings increase is expected to occur in the first six months of fiscal 2010. The second half performance implied in the guidance recognizes the more challenging last year comparisons for both sales growth and merchandise margins.