SPRINGFIELD, N.J. — Village Super Market here on Wednesday said fourth-quarter net income fell 31% from year-ago levels due to lower gross margins and higher expenses.
Net income for the 13-week quarter, which ended July 27, totaled $6.2 million, on $376.3 million in sales, a 1.7% increase over the preceding year. Same-store sales also increased 1.7%.
Village, a member of Wakerfern Food Corp. operating 29 ShopRites in New Jersey, Maryland and Pennsylvania, said sales were impacted by economic weakness, high gas prices and high unemployment, leading to increased sale-item penetration and trading down. Gross profit in the fourth quarter was about 27.1% of sales, vs. 27.4% in the year-ago fourth quarter. Operating and administrative expenses totaled 22.7% of sales in the most recent quarter, vs. about 21.8% in the final quarter of fiscal 2012.
For the full fiscal year, Village posted net income of $25.8 million, down 18% from fiscal 2012, on a sales increase of 3.8%, to about $1.48 billion.
Read more: Village Cites Competitive Pressures in Q3
Net income was impacted by several one-time items. Excluding those, net income fell 21%. Village also said it had reduced losses from its two Maryland stores in the most recent fiscal year.
Sales for the year increased due to the acquisition of a store in Old Bridge, N.J., last January, and a same-store sales increase of 2.9% for the year.
|Suggested Categories||More from Supermarketnews|