Gelson's Store Closing Leads to Q1 Earnings Drop

LOS ANGELES — Arden Group, parent company of Gelson's Markets [3], said the shutdown of one of its 18 supermarkets contributed to a drop in earnings during the first quarter ended March 31.

The company said net income for the 13-week period fell 48.6% to $2.9 million, while sales increased 2.9% to $107.2 million and same-store sales, excluding the closed store, rose 3.7%, which the company attributed to inflation and an increase in the number of transactions.

Arden Q4 Earnings Drop, Sales Rise [4]

In late February Arden closed the Gelson's store in Northridge, Calif., and reached an agreement to assign the store lease to a third party.  As part of the agreement, Gelson's paid the third party a lease assignment fee of $1.85 million during the second quarter and transferred various equipment to it.