Fred's Reports Loss For Q3 - Quick Facts

(RTTNews) - Fred's, Inc. (FRED) Tuesday reported a loss for the third quarter, compared with profit last year, as an increase in cost of goods sold more than offset a 3 percent rise in sales.

The discount retailer's net loss stood at $10.4 million, or $0.28 per share, compared with a profit of $7.3 million, or $0.20 per share, a year earlier.

Excluding certain items, loss totaled $0.16 per share. On average, nine analysts polled by Thomson-Reuters estimated loss to be $0.13. Analysts' estimates typically exclude one-time items.

Net sales grew to $476.17 million, from $460.54 million last year, while analysts expected $476.15 million. Comparable store sales edged up 0.3 percent.

As part of its plan to close stores not meeting its performance goals, the company closed five stores in the third quarter and said it will close 47 more in the fourth quarter.

For the fourth quarter, the company expects sales to increase in the range of 4 to 6 percent. It also forecasts fourth-quarter net loss $0.08 to $0.12 per share and, on an adjusted basis, operational earnings of $0.04 per share.