Fred's October same-store sales rise 1.3 percent

MEMPHIS, Tenn. - Fred's Inc. said Thursday October same-store sales rose 1.3 percent as more customers visited the discount retailer's stores.

The result — considered a key measure of retail strength because it tracks sales at stores open at least a year — was slightly better than the 1 percent gain expected by analysts in a Thomson Reuters poll.

The sales reflect "a continuation of improving traffic trends and reinforcing the positive impact of our sales initiatives," Chief Executive Michael Hayes said in a statement.

In the year-ago period, the company saw its same-store sales rise 0.6 percent.

Total sales in the month ended Nov. 1 fell 2 percent to $128 million from $130.4 million a year ago, as the company shuttered 75 stores and 22 pharmacies this year.

Excluding year-ago sales from the closed stores, total sales rose 2 percent.

For the quarter, same-store sales increased 1.4 percent and total sales slipped to $417.8 million from $419.9 million. That result was lower than the $418.5 million expected by Wall Street.

Looking ahead, Hayes said the fourth-quarter and holiday season show "signs of uncertainty." The company has reduced inventory and expects consumers to shop for bargains, although lower gas prices are expected to somewhat offset concerns about the slowing economy.

Shares of the company added 5 cents to $10.75 in morning trading.

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