News

Fred’s Super Dollar reports July sales, projects Q2 loss

BY Michael Johnsen

MEMPHIS, Tenn. — Fred's Super Dollar on Thursday reported July sales of $148 million, representing an increase of 4%. Comparable store sales for the month increased 0.7% on top of a 2.5% increase in the same period last year. 
 
For the second quarter ended Aug. 2, Fred's posted an increase of 2% to $490.6 million. On a comparable store basis, second quarter sales decreased 0.1% versus an increase of 2.2% for the year-earlier period.
 
"We are pleased that Fred's returned to positive comparable-store sales for July, reflecting stronger trends in general merchandise sales and improved customer traffic, as recent changes to our marketing plan have gained additional traction," stated Bruce Efird, Fred's CEO. "General merchandise departments that reported better performance in July included health aids, housewares, flooring, stationery, toys, auto and hardware and several consumable departments," he said. "With our new ad program and marketing strategy now in place, we expect these positive trends to continue in the back half of the year.
 
"In July, we also rolled out a clearance and inventory right-sizing program in all of our stores to address unproductive inventory and exit or reduce product categories that do not align with our convenience center model," Efird added. 
 
Fred's also realized ongoing sales and script growth in the pharmacy department during July, with the company's best monthly comparable-script growth of the year, Efird said. However, Fred's pharmacy department margins for July continued to be pressured by very significant vendor cost increases on both brand and generic drugs. This cost pressure in the pharmacy accounted for a drop of approximately 225 basis points in pharmacy department gross margin. On a positive note, Fred's finalized a new pharmacy prime vendor distribution agreement. "With this key strategic relationship, we have a new alliance that supports our rapid growth and addresses the issues experienced over the past yeaer, while restoring Fred's pharmacy department margin and signficantly improving the profitability of its specialty pharmacy business," Efird said. 
 
"With the transitional costs associated with implementing our convenience center model, together with the vendor-related cost pressures on pharmacy, we now expect to report a loss for the second quarter in the range of $0.15 to $0.20 per share, exclusive of reserves for disposition of inventory and stores that do not fit our convenience model," Efird continued. "However, the drivers of performance for the balance of the year will be the pharmacy department's new vendor agreement, store shipments returning to forecast and the continuation of our new marketing programs. We plan to outline these strategic changes and our expectations for future performance on August 28, when we announce second quarter results and provide updated guidance for the remainder of 2014."
 
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Sales of Nivea, Eucerin increase during first half of 2014 at Beiersdorf

BY Antoinette Alexander

HAMBURG, Germany — Beiersdorf released results for the first half of the year and recorded a lift in sales of Nivea and Eucerin brands in the consumer business segment.

The consumer business segment recorded organic sales growth of 5% in the first half of the year. The strong euro led to a reduction in this figure of 5.1 percentage points as a result of negative effects from currency translation, the company stated. Structural changes reduced growth by 0.1 percentage points. In nominal terms, sales therefore decreased by 0.2% to €2,637 million.

Nivea sales rose by 6.1% compared with the previous year. In the first half of 2014, Eucerin continued its strong sales performance of the previous year, recording a 6.8% increase in sales. La Prairie recorded sales growth of 7.0%.

Consumer sales in the Americas were down 4% on the previous year (€464 million), due to exchange rate changes for the U.S. dollar and the key South American currencies. Organic sales in the Americas region rose by 4.8%. Sales in North America were up 4.2% on the previous year.

Organic group sales in the first half of the year were up 5.0% on the prior year. Growth was reduced by 4.8 percentage points due to exchange rate effects. Nominal group sales were up 0.2% on the previous year, at €3,171 million (previous year: €3,163 million). The consumer business segment recorded organic growth of 5.0%, while sales grew organically by 5.4%.

Looking ahead, the company stated that it expect slightly higher growth in the United States economy in 2014. Alongside increased consumer spending due to a lower unemployment rate, it anticipates higher public spending.
 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Cardinal Health approves quarterly dividend, announces board leadership changes

BY Michael Johnsen

DUBLIN, Ohio – Cardinal Health on Wednesday announced that its board of directors approved a cash dividend of $0.34 per common share payable on Oct. 15, 2014, to shareholders of record at the close of business on Oct. 1, 2014.
 
The board of directors also authorized an increase by $1 billion to its existing share repurchase program announced on Oct. 31, 2013.  With this addition, the Cardinal Health program has approximately $1.7 billion available for share repurchases and expires on Dec. 31, 2016. 
 
Also, John Finn, a Cardinal Health director since 1994, has informed the company that he has decided not to stand for re-election when his term expires at the 2014 annual meeting of shareholders. Effective Nov. 1, 2014, the board has appointed Gregory Kenny as lead director and chair of the Nominating and Governance Committee. Kenny, who has served as a director since 2007, will succeed Finn, lead director since 2009 and chair of the Nominating and Governance Committee since 2012.
 
"John's impact on Cardinal Health is incalculable. For two decades, John has been a source of insight, experience, instinct and collaboration," stated George Barrett, chairman and CEO of Cardinal Health. "As lead director, he has played an extremely influential role on our board and has been an extraordinary partner to me. I've come to depend on his keen judgment. I know I speak for all of us in wishing John the very best."
 
In addition, effective Nov. 1, David King will become chair of the Human Resources and Compensation Committee. Clayton Jones also has assumed the role of chair of the Audit Committee.  
 
 
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?