Fred's Not Happy for Holiday
November 27, 2006,
Fred's stumbled in the third quarter; its earnings fell by 6% to $6 million vs. $6.3 million during the year-ago period. The culprit: October. Following several months of steady sales and comp gains, lower-than-expected October growth arrived against comparisons to a period last year when aid to the hurricane-stricken Southeast help propel Fred's results. Although third quarter sales rose 8% to $407.9 million, they missed Wall Street's target by $6 million. Comps rose 3%.
Should Congress pass a minimum wage increase, Fred's should benefit from it despite short-term impact on its own payroll, executives said. "Our 2007 projection will probably be more positive than some might expect," Hayes said.
Related Content By Author
The Countdown to the ICON Honors Continues featuring Christophe Pourny