Fred's 3Q income down slightly

MEMPHIS, Tenn. Fred's today reported that net income for the third quarter of 2007 totaled $4.6 million or 12 cents per diluted share versus net income in the prior-year period of $6 million or 15 cents per diluted share. For the nine months ended Nov. 3, net income totaled $15.1 million or 38 cents per diluted share, compared with net income of $17.6 million or 44 cents per diluted share for the first nine months of 2006.

Total sales for the third quarter of 2007 increased 3% to $419.9 million from $407.9 million in the same period last year. For the first nine months of 2007, total sales increased 5% to $1.287 billion compared with $1.23 billion in the year-earlier period. On a comparable-store basis, sales increased 1.1% for the quarter versus a 3% increase in the year-earlier period. Comparable-store sales for the year to date in 2007 increased 1.2% versus 2.1% in the year-earlier period.

Operating income for the third quarter of 2007 totaled $7.2 million, down from $9.3 million in the year-earlier period. Operating income was 1.7% of sales in the third quarter of 2007 compared with 2.3% of sales last year. Operating income for the first nine months of 2007 totaled $24 million, down from $26.6 million in the prior-year period. Operating income for the first nine months of 2007 was 1.9% of sales versus 2.2% of sales last year.