Friedman's Sales Rose 6.3%

Friedman's net quarterly sales increased 6.3 percent, to $210.6 million compared to $198.1 million during the comparable period last year. Comparable store sales increased 2.7 percent during the quarter.

The reported results are only headline numbers as the company is busy on restating its financial statements for at least the last three fiscal years after Ernst & Young withdrew its audit opinions on the statements for fiscal years 2000, 2001 and 2002.

The increase in same store sales has surprised industry analysts as the company is facing growing trouble of the kind it feared would prevent it from concentrating on season sales.

The trouble includes an audit committee that is conducting an internal investigation on the company finances, the CEO has quit his post, the SEC is investigating it, shareholders are suing the company and low-income clients are defaulting on loans given to them, forcing the company to set aside an increased sum to cover them.