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Easter, Economy Hit Gelson’s Sales

Arden Group, parent of the 18-unit Gelson's chain, said second-quarter sales were negatively impacted by the earlier Easter and Passover holidays this year, as well as economic conditions and competition.

LOS ANGELES — Arden Group here, parent of the 18-unit Gelson's chain, said second-quarter sales were negatively impacted by the earlier Easter and Passover holidays this year, as well as economic conditions and competition.

Net income for the 13-week second quarter, which ended July 3, was down 16.6%, to $4 million, as sales slid 5.5%, to $102 million, compared with year-ago levels. Same-store sales also slid 5.5%. Operating income was down 14.5% for the period, to $6.7 million.

The company said its operating income has been negatively impacted since March by increased contributions to employee health care. Through the first half of the fiscal year, net income fell 13.6%, to $9.1 million, while sales were down 4.6%, to $206.7 million.