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Sales Rise, Earnings Flat at Village

SPRINGFIELD, N.J. — Strong sales at stores that reopened quickly following Hurricane Sandy helped Village Super Market here post a 5.4% sales increase during the second quarter, the retailer here said Wednesday.

Net earnings of $9.1 million for the period, which ended Jan. 26, were essentially flat vs. the same period last year, but when adjusted for one-time items in each period, decreased by 6%. Sales totaled $382.2 million, reflecting a new store in Old Bridge, N.J., and a same-store sales increase of 3.4%. Sales gains were offset by some stores that were closed up to eight days due to Hurricane Sandy.

Read more: Village Eyes Replacement Stores, Remodels

Sales continue to be impacted by economic weakness, high gas prices and high unemployment, which has resulted in increased sale item penetration and trading down, Village said. The company, which operates 29 ShopRites in New Jersey, Maryland and Pennsylvania, expects same-store sales in fiscal 2013 to increase from 2% to 3.5%.

Gross profit as a percentage of sales decreased to 26.9% in the second quarter of fiscal 2013 compared with 27.4% in the second quarter of the prior year, primarily due to decreased departmental gross margin percentages and lower patronage dividends.

For the six-moth fiscal year-to-date, Village said net income was down 6% to $15 million and down by 11% when adjusted for one-time items, primarily due to lower gross profit percentages, partially offset by reduced losses at two stores in Maryland. Sales of $740.3 million increased by 5%.

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