Fred's (FRED -9.4%) Q2 earnings beat on the top line as net income rose 19% on a benefit from an...

|By:, SA News Editor

Fred's (FRED -9.4%) Q2 earnings beat on the top line as net income rose 19% on a benefit from an income tax settlement, which partially offset store closing costs and promotional markdowns. But the company lowered the bottom end of its FY12 EPS guidance by a penny, and warned of an "intensely" competitive retail environment in the third and fourth quarters.