Fred's Inc. said its normalized net income for the fiscal second quarter ended Aug. 2 amounted to a loss of 40 cents per share, compared with the S&P Capital IQ consensus estimate of a loss of 17 cents per share.
The per-share result swung to a loss from the prior-year profit of 9 cents.
Normalized net income, which excludes unusual gains or losses on a pre- and after-tax basis, was a loss of $14.6 million, compared with income of $3.2 million in the year-earlier period.
The normalized profit margin fell to negative 3.0% from 0.7% in the year-earlier period.
Total revenue grew year over year to $491.2 million from $482.2 million, and total operating expenses climbed 7.9% from the prior-year period to $514.4 million from $477.0 million.
Reported net income totaled a loss of $16.6 million, or a loss of 45 cents per share, compared to income of $3.3 million, or 9 cents per share, in the year-earlier period.
