Fred's 3Q Sales Grow, Profit Drops

摘要

As Fred's Inc. works to rebrand itself and revamp some of its key units to better drive traffic, the discount retailer saw its total sales slightly increase but net income drop 17% during the third quarter.rn"The company's third-quarter sales and financial results did not meet expectations," said Bruce Efird, ceo, of the 665-unit discount chain. "During the quarter, we ramped up our promotions and advertising programs to drive traffic, and while those efforts produced a substantial increase in sales of the featured items, sales and traffic did not increase sufficiently to offset the higher markdowns and expenses."rnFor the third quarter, ended Oct. 31, Fred's net income was $5.0 million or 13 cents per share, down 17% from $6.1 million or 15 cents per share in the same quarter last year. The company said profit was impacted by a significant increase in promotional programs and associated expenses.