MEMPHIS (AP) — Fred's Inc., the operator of a chain of nearly 700 discount stores in the southeastern U.S., said Thursday that an important sales measurement rose 2.8 percent in September compared with a year ago.

Analysts expected a 2.3 percent rise, according to Thomson Reuters.

Revenue in stores open at least one year is considered an important measurement of a retailer's performance because it strips out the effects of opening new stores.

Total sales for the month rose 4 percent to $177.3 million from $170.9 million last year.

Year-to-date, revenue in stores open at least one year rose 0.8 percent while total sales rose 1 percent to $1.301 billion.

Fred's CEO Bruce Efird said the sales were on the high end of the company's projected range, due to better general merchandise and pharmacy sales.

Its shares finished at $15.18 on Wednesday. Its shares have traded in a range of $12.30 to $17.71 over the past year.