Profit slips at Fred’s
Memphis, Tenn. Fred’s said Wednesday that its first-quarter profit slipped 4% even as sales climbed. The chain earned $8.2 million during the three-month period that ended on May 1. That compares with $8.6 million a year earlier.
Net revenue rose almost 3% to $471.6 million, up from $458.4 million last year. Same-store sales rose 2.2%.
Fred’s has 670 stores around the country.
Bruce A. Efird, CEO of Fred’s, said the company will continue to invest in its prototype stores and implement 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,” he said.
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.