Fred’s sales up 1.2% in July

Memphis, Tenn. -- Discount-store operator Fred's Inc. said Wednesday that its same-store sales increased 1.2% during the four weeks ended July 28, helped by markdowns that increased customer traffic. The company also raised its earnings guidance for the second quarter, citing a tax settlement with the state of Tennessee. Total sales for the month rose 5% to $136.7 million. Fred's said that it completed negotiations with the state of Tennessee to settle a tax matter, which will help offset costs related to store closings and July sales markdowns, in the second quarter.