Fred's, Inc. announced unaudited earnings results for the first quarter ended May 5, 2018. For the quarter, the company reported net sales of $437.1 million as compared to $464.2 million a year ago. Net loss was $19.9 million, or $(0.54) per share as compared to a loss of $37.8 million, or $(1.02) per share a year ago. Adjusted EBITDA, a non-GAAP financial measure, was $(3.3) million in as compared to $6.2 million a year ago. Comparable store sales for the quarter decreased 3.9% compared to a 4.2% decrease the first quarter of last year. Comparable store sales were down 4.3% for the front store, and 3.4% in the retail pharmacy. LBITDA was $10,189,000 as compared to $23,016,000 a year ago. Free cash flow was $11.386 million as compared to $23.862 million a year ago. Loss from continuing operations before income taxes was $20.051 million as compared to $36.491 million a year ago. Operating loss from continuing operations was $18.063 million as compared to $35.204 million a year ago. Net cash provided by operating activities was $8.918 million as compared to $21.145 million a year ago. Capital expenditures was $2.468 million as compared to $2.123 million a year ago.

For the year 2018, the company expected capital expenditures to be down for fiscal year 2018 versus 2017.