MEMPHIS, Tenn. (AP) -- Discount store operator Fred's Inc. said Thursday that revenue at stores open at least a year fell by 0.8 percent in January, as its customers continued to struggle in the midst of a weak job market.
The results were below the 1.1 percent rise predicted by analysts, according to a poll by Thomson Reuters. The metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
The company said total revenue during the month rose 3 percent to $132.4 million, compared to $129.1 million last year.
The company said total revenue during the fourth quarter rose 2 percent to $497.7 million compared to $485.6 million during the same period last year. Sales at stores open longer than a year rose 0.1 percent during the quarter.
For the fiscal year, total revenue rose 2 percent to $1.88 billion, compared to $1.84 billion the year before. Sales at stores open longer than a year rose 0.5 percent.
The company said it still expects that its net income on the fourth quarter will be at the low end to midpoint of its projected range between 23 cents and 27 cents per share, reflecting an offsetting benefit from ongoing control of expenses.
Analysts are expecting adjusted net income of 24 cents per share, according to FactSet.
Share of Fred's rose 7 cents to $14.75 in midday trading.
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