Fred's: Merry Go Round
Darspal S Mann
Darspal S Mann
Fri, Nov. 25, 12:34 PM
- Credit Suisse thinks the dollar store sector could benefit if the legal challenge to extending overtime pay benefits to workers making up to $47K holds up.
- “Dollar stores would have been most heavily impacted by the new overtime rule given the sheer number of stores they operate and their unique low-cost labor model,” reads the CS note.
- “With only two to three employees per store typically working at any given time, store managers comprise a significant percentage of store labor and generally work heavy overtime.”
- Beyond Dollar General (DG +0.6%) and Dollar Tree (DLTR +0.1%) -- a list of companies that could benefit from the OT rules staying the same includes Five Below (FIVE -1.6%), Big Lots (BIG -0.5%) Fred's (FRED -1.2%) and Ollie's Bargain Outlet Holdings (OLLI -0.2%).
- Previously: New DOL overtime rule in state of flux (Nov. 25)
Tue, Nov. 22, 10:01 AM
- Dollar Tree (NASDAQ:DLTR) is up 11% after delivering a solid quarter that included an increase in Family Dollar acquisition benefits.
- Burlingon Stores (NYSE:BURL) races 15% higher after its Q3 results topped expectations.
- DSW (DSW +7.5%) and Chico's (CHS +7.3%) also turned in solid reports to round out the good cheer in the sector.
- Other retailers on the move include Dollar General (DG +3.1%), Big Lots (BIG +3.8%), Ollie's Bargain Outlet Holdings (OLLI +1.9%), American Eagle Outfitters (AEO +3.5%), Five Below (FIVE +2.8%), and Fred's (FRED +1.8%).
- Even the bigger chains are bringing in buyers, with Target (TGT +1.3%), Wal-Mart (WMT +1.5%), Staples (SPLS +1.8%) and Office Depot (ODP +3.2%) all ahead of broad market averages.
- The general theme in the retail sector today is margin improvement as some merchandise and operational costs were shown to have been reeled in to improve profitability.
Mon, Nov. 21, 10:32 AM
Wed, Nov. 9, 1:14 PM
- Retail store chains are breaking higher as investors digest the impact of the GOP sweep.
- A very popular topic on Q3 conference calls was election anxiety in the U.S., with the thought that consumers were holding back.
- An interesting point is that in recent consumer sentiment surveys Republicans showed a sharply lower positive reading on the state of affairs than Democrats. If the theory holds out, close to 60M Trump voters will now open their pocketbooks a bit more.
- Gainers include Fred's (FRED +10.5%), Tuesday Morning (TUES +7.1%), Kroger (KR +4.2%), Whole Foods Market (WFM +2.5%), Supervalu (SVU +4.2%), Ollie's Bargain Outlet Holdings (OLLI +3%) Stage Stores (SSI +6.7%), Build-A-Bear Workshop (BBW +2.7%), Kohl's(KSS +3.3%), Dillard's (DDS +2.2%), Stein Mart (SMRT +4.5%), Tailored Brands (TLRD +4.1%), Guess (GES +3.6%), Gap (GPS +3.1%), Buckle (BKE +3.6%) and PriceSmart (PSMT +1.4%).
Thu, Nov. 3, 7:49 AM| Thu, Nov. 3, 7:49 AM
Mon, Oct. 17, 1:02 PM
- Investors appear to be a little edgy about the chain store sector with the earnings season just starting to ramp up.
- Dillard's (DDS -4.3%) and Bon-Ton Stores (BONT -5%) are down significantly, while Kohl's (KSS -1.3%), Big Lots (BIG -0.7%), Fred's (FRED -1.6%), Target (TGT -1.2%), Five Below (FIVE -2.6%), Pier 1 Imports (PIR -5.3%), and Barnes & Noble Education (BNED -2.4%) are all tracking below broad market averages.
- There isn't a lot of consensus about what's been holding back U.S. consumers. Today, higher gas prices is being floated around as a factor, while last week it was election anxiety.
- 12-month chart of gas prices in the U.S. via GasBuddy.
- Previously: Retail sales track higher as expected (Oct. 14)
- Previously: Winners and losers from the retail sales report (Oct. 14)
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF, FTXD, JHMC.
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Thu, Oct. 6, 7:51 AM
- Fred's (NASDAQ:FRED) reports comparable sales fell 4.9% in September.
- Total sales were down 5.5% to $199.9M.
- YTD sales are up 0.5% to $1.439B.
- Fred's on sales: "September sales faced a tough year-over-year comparison. The front store also experienced calendar shifts for federal assistance payments, continued substantial reductions in SNAP payments, and an increased impact related to competitive pricing strategies, particularly in consumables categories."
Tue, Oct. 4, 10:11 AM
- Cleveland Research downgrades Dollar Tree (DLTR -3.2%) to a Neutral rating from Buy after channel checks indicate a slowdown in sales trends.
- Headwinds in the discounter space include increased competition, price deflation in key categories, and a reduction in SNAP benefits.
- The investment firm's dour outlook on the sector is hitting Dollar General (DG -1.5%) and Fred's (FRED -2.2%) as well.
Mon, Oct. 3, 10:38 AM
Tue, Aug. 30, 8:39 AM
- Fred's (FRED) reports comparable-store sales fell 2% in Q2.
- Gross margin rate flat Y/Y at 24.2%.
- SG&A expense rate increased 60 bps to 24.1%.
- The company expects total sales and comparable-store sales to range from -1% to +1% for the second half of the fiscal year.
- Adjusted EBITDA expected to be in the range of $18M to $21M for the second half.
Tue, Aug. 30, 7:47 AM
Mon, Aug. 29, 7:14 PM
- Fred's (NASDAQ:FRED) says Chief Operating Officer Michael Bloom will become its new CEO, effective immediately, replacing Jerry Shore, who will retire from the job in February while remaining on the company's board.
- Bloom, who had more than 30 years of experience working retail and drug stores, joined Fred’s in January 2015 as COO and President, the same titles he held at Family Dollar Stores.
- Shore joined Fred's in 2000 as Executive VP and CFO after 11 years as CFO of Wang’s International, an importing and wholesale distribution company.
Mon, Aug. 29, 5:30 PM
Mon, Aug. 22, 3:02 PM
Fri, Aug. 19, 7:29 AM
- Fred's (NASDAQ:FRED) announced that it promoted Timothy Liebmann to the newly created role of Chief Operating Officer – Pharmacy, effective immediately.
- Liebmann, who was serving at the company as a VP of Pharmacy Services, succeeds Rick Chambers who is retiring from the company.
- Fred's operates three specialty pharmacy-only locations and 372 full service pharmacy departments located within Fred's stores.
- Source: Press Release