Fred’s discloses Q3 earnings
MEMPHIS, Tenn. Fred’s on Wednesday reported $434.9 million in sales, up 3% for the third quarter ended Oct. 30. Comparable-store sales for the quarter increased 1.5%, compared with a 1% increase in the third quarter last year.
“We are pleased by the positive trends in Fred’s October sales mix and customer traffic, reflecting the ongoing success of our 2010 initiatives,” stated Bruce Efird, Fred’s CEO. “Pharmacy-comparable sales increased less than we planned due to a lower average script price, driven by utilization of generics, which offset on-plan increases in comparable script counts,” he said. “A significant feature of our performance initiatives for the year involves our upgrade and remodel program, and through the third quarter we have upgraded and remodeled 190 stores."
CNE announces partnership with Hallmark Cards
NEW YORK Cartoon Network’s global licensing and merchandising arm has inked a deal with a greeting card manufacturer.
Cartoon Network Enterprises said its long-term partnership with Hallmark Cards will include greeting cards and party supply items based on Cartoon Network’s portfolio of brands, including Ben 10 Ultimate Alien, Generator Rex and Adventure Time, CNE said.
Hallmark’s product offerings will be available throughout North America.
Net sales jump in Q3 for Drugstore.com
BELLEVUE, Wash. Drugstore.com on Tuesday reported a 23% increase in net sales to $108.8 million for the third quarter ended Oct. 3.
“Including a strong performance from SkinStore.com, over-the-counter sales increased 26% year-over-year,” stated Dawn Lepore, CEO and chairman at Drugstore.com. “During the quarter, we did experience supply constraints from a few of our major vendors and some softness in discretionary spending, which impacted growth and resulted in increased promotions,” she said. “[But] with continued growth in our [over-the-counter] and vision segments, we remain on track to hit our 2010 goals of OTC revenue growth of 24% to 28%, doubling our prestige beauty business and delivering $16 to $20 million in revenues from our partnerships.”
For fourth quarter 2010, Drugstore.com is targeting net sales in the range of $118 million to $122 million. As a reminder, fourth quarter 2010 is a 13-week period and compares with a 14-week period in fourth quarter 2009, the online retailer stated.
Drugstore.com served approximately 447,000 new customers, excluding strategic partnerships, during the quarter, up 21% over the same period in the prior year. Marketing and sales expense per new customer, excluding partnership orders, increased to $25.