Wedbush Comments On Fred's Light March Sales

According to Wedbush, Fred's FRED March sales were a little light. Wedbush reported that it had forecasted March comps in line with guidance for 1%-3%, as the company expected the positive impact of the five-week month to be more than offset by the shift of Easter sales to April. “On March 24, management commented that April was expected to benefit from the shift, with comps expected to increase 4%-6%. Overall Q1 comps are guided to 1%-3%, with pharmacy sales turning flat to negative as a result of the continued shift toward generics. Previously reported, February comps were up 0.9% vs. 2.0% LY, below our/consensus estimates of 3.0%/2.5% due to harsh winter weather early in the month and delayed consumer tax refunds (which began to roll in later in the month). As February progressed, sales improved along with weather and tax refund arrivals, and the second half of the month saw strengthening sales, driven by a balanced mix of traffic and ticket.” Fred's closed yesterday at $13.57.