Fred’s Inc. (NASDAQ: FRED) announced its financial results for the third quarter ended October 28, 2017. After the announcement, shares of the company dropped 19.84% to $4.08 per share in premarket trading on Wednesday.

“In the third quarter, we furthered our efforts to turn around the Company, and we are encouraged by our positive front store comp sales in both October and November. We are focused on driving traffic, reducing SG&A, generating free cash flow and lowering our debt,” Michael K. Bloom, the Chief Executive Officer of the company, said in the statement on Wednesday.

For the third quarter, Fred’s net sales decreased 4.5% from $516.6 million for the same period last year to $493.6 million. According to the company, the decreased was primarily motivated by the closure of 39 underperforming stores earlier in 2017. The result missed analysts’ estimates of $499.75 million.

Additionally, comparable store sales for the third quarter dropped 0.8%, compared with a decline of 3.8% for the same period last year.

The company reported net loss of around $51.8 million or $1.38 per share for the third quarter, which included the charges totaling $45.0 million, or $0.96 per share after tax.

“We recognize that our EPS results are below expectations; however, the management team, working closely with the Board of Directors, is taking the actions necessary to ensure Fred’s achieves profitability and growth over the long-term,” Michael said.