) reported total sales and comparable sales for Feb 2012. While
total sales increased marginally from the comparable period in
the prior year, comparable sales declined. Deferred sales related
to the spring layaway program would have added 60 bps of growth
to both total and comparable store sales.
Comparable store sales for the month fell 1.5% compared to a
slip of 0.7% in the year-ago month. The decline was attributed to
lower transactions due to economic headwinds, ongoing tax
processing and refunds, and higher payroll taxes.
Comparable store sales for general merchandise was however
positive for the second straight quarter, helped by new products
in auto/hardware and strength at its discount tobacco shop.
Pharmacy department sales saw positive script growth that was
offset by the ongoing brand-to-generic shift in the pharmacy
industry, which affected comparable sales by 280 basis
Total sales for Feb 2013 marginally increased to $159.2
million compared to $159.0 million a year ago.
The company opened one store and an Xpress pharmacy during the
Keeping in view higher insurance and operating cost and
lowering of prices on basic and consumable products, the company
lowered its fourth quarter 2012 earnings to the range of 16 cents
to 21 cents per share compared to the previously announced range
of 25 cents to 31 cents announced in Jan 2013.
Delayed tax refunds, increased payroll taxes and high gas
prices resulted in soft sales gains for most retailers including
Limited Brands Inc.
Costco Wholesale Corporation
), which registered comps growth of 3%, 3% and 6%,
A tough retail environment and declining comparable store
sales over the past several months remain a concern. Currently,
Fred's carries a Zacks Rank #3 (Hold).
COSTCO WHOLE CP (COST): Free Stock Analysis
FREDS INC (FRED): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
LIMITED BRANDS (LTD): Free Stock Analysis
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