Fred's Q2 Loss Widens; Appoints Heath Freeman As Chairman

(RTTNews) - Fred's Inc. (FRED) reported that its net loss for the second quarter ended July 29, 2017 widened to $29.5 million or $0.78 per share, from $6.9 million or $0.18 per share for the second quarter of 2016. The latest-quarter result included charges of $30.1 million, or $0.63 per share after tax.

Net sales for the second quarter were $507.8 million, down 4.1% from $529.5 million in the same period last year. Comparable store sales for the second quarter declined 0.3% versus a decrease of 2.0% in the second quarter last year. Comparable store sales in the second quarter of 2017 included a negative 0.8% impact as a result of the sale of low productive discontinued inventory versus the second quarter of 2016.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.19 per share and revenues of $507.4 million. Analysts' estimates typically exclude special items.

Separately, Fred's announced that it has appointed Heath Freeman Chairman of the Board of Directors, effective immediately. Freeman succeeds Thomas J. Tashjian, who is retiring from the Board.