follow us

Fred’s accelerates turnaround with ‘refresher’ plan

Memphis, Tenn. – Discount general merchandiser Fred’s Inc. said its “refresher” program is yielding positive results, as the company reported fiscal year 2006 net income increased 2% to $26.7 million or $0.67 per diluted share, from net income of $26.1 million or $0.66 per diluted share for 2005.

Quarterly earnings were $9.2 million or $0.23 per diluted share, off from net income in the prior-year period of $9.6 million or $0.24 per diluted share.

For 2006, total sales increased 11% to $1.77 billion compared with $1.59 billion in the year-earlier period, while fourth-quarter sales accelerated, growing 17% to $535.6 million from $456.5 million in the same period last year.

Michael Hayes, ceo of the 701-store southeastern chain, “I am pleased with the way we executed our plan in the fourth quarter, meeting goals for sales, expenses and operating income. On a comparable basis, excluding the effect of restructuring costs and stock option expense, fourth quarter operating income improved approximately 20% over the same period last year, as earnings per diluted share, excluding the impact of restructuring, reached the high end of our forecast.”

Hayes emphasized, “The roll-out of our store refresher program and new merchandising strategies will improve the look and feel of our stores. This will be backed by a new branding campaign.”

Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today