Fred's beats by $0.05, reports revs in-line; March SSS decline 0.5% YoY; provides update on Rite Aid transaction
- Reports Q4 (Jan) loss of $0.11 per share, excluding non-recurring items of $0.49 per share, $0.05 better than the Capital IQ Consensus of ($0.16); revenues fell 4.5% year/year to $529.7 mln vs the $530.8 mln Capital IQ Consensus.
- March 2017 Sales
- Comparable store sales for March decreased 0.5% versus an increase of 1.8% in the year-earlier month
- The March 2017 comparable store sales reflected the benefit of tax refunds, which were delayed from February to March, but were offset by a later Easter (April 16 this year versus March 27 last year), shifting holiday sales into April.
- Fred's total sales for the month decreased 2.7% to $208.6 mln from $214.3 mln in March 2016
Rite Aid Transaction update
- On December 20, 2016, the Company announced that it signed an agreement with Walgreens Boots Alliance (WBA) and Rite Aid (RAD) to purchase 865 stores for $950 mln in cash. Fred's Pharmacy is working collaboratively with Walgreens Boots Alliance, Rite Aid and the FTC to help obtain the FTC's approval of Walgreen Boots Alliance's pending acquisition of Rite Aid and the divestiture of certain Rite Aid assets to Fred's Pharmacy.
- Fred's Pharmacy remains committed to purchasing additional assets, including up to 1,200 Rite Aid stores, to the extent necessary to obtain the FTC's approval of the transaction. Completion of the transaction is subject to approval by the FTC, as well as other customary regulatory approvals and closing conditions.
- Co reiterates that the transaction will accelerate the Company's healthcare growth strategy, generating considerable benefits for our customers, patients, payors, supplier partners, team members and shareholders.