Investors are keeping a close watch on Fred’s Inc. FREDas the discount retailer is gearing up to report fourth-quarter fiscal 2017 results. However, there are two things investors must note before they take a stock of the results. Firstly, Fred’s has rescheduled its earnings announcement date, and the second thing to note is why the company took this step.
Well, Fred’s revealed that its fourth-quarter earnings are now slated to be reported on May 4, which will be followed by management’s conference call. Management clarified that this postponement is solely connected to Fred’s plans to divest its specialty pharmacy business, which will soon form part of the company’s discontinued operations.
Notably, these revelations spurred investors’ sentiment, as shares of the company gained a solid 13.3% during yesterday’s trading session. This gave a major respite to the stock that was otherwise in the red zone for a while. Incidentally, Fred’s has lost close to 79% in a year, as against the industry’s rise of nearly 20%. This is largely attributable to Fred’s dismal comps and earnings record, as well as the impact of the canceled merger between Rite Aid RADand Walgreens WBA. The canceled deal thwarted Fred’s store expansion plans and kept it far behind industry leaders like Walgreens and CVS Health Corporation CVS.