Fred’s earnings (NASDAQ:FRED) were released on Thursday early in the day, which saw its revenue drop, causing the company’s stock to plummet more than 20% by the afternoon.

The company’s net loss from continuing operations came in at $30.8 million during its third quarter of its fiscal 2018, or 83 cents per share, which is narrower than what it brought in during the year-ago quarter. The pharmacy operator had brought in a loss of $50.4 million, or $1.35 per share during its third quarter of fiscal 2017.

Fred’s added that its net sales for the period fell 5.5% when compared to its year-ago quarter, coming in at $306.4 million for this period. Comparable sales fell as well, taking a hit of 5.3% compared to the company’s comps from its year-ago quarter, when the figure only declined 1% year-over-year.

The company added that its gross margin surged by 353 basis points to 25.1% when compared to last year, due in part to a one-time markdown reserve charge that was recorded in 2017 but that it did not reoccur in 2018.

“We have made significant progress against our goal of strengthening the balance sheet and as of December 12, 2018 our ABL balance stood at $51.9 million versus $153.4 million as of the beginning of this fiscal year,” said Joe Anto, interim CEO and CFO at Fred’s.

FRED stock is sinking about 26% on Thursday following the news on its earnings miss, but its loss did narrow compared to its year-ago quarter results.