SPRINGFIELD, N.J. — Village Super Market here said last week that net income for the company's third fiscal quarter was down 17% compared with year-ago results, which the ShopRite operator attributed to a 1.5% decrease in comparable-store sales and increased operating expenses.
The same-store sales decline compared with a year-ago increase of 7.3%. Village said cannibalization from a new location opened last May and two new competitive openings contributed to the same-store sales decline in the most recent quarter.
Total sales for the quarter of $301 million rose 2.6%, however, due to the openings of the new store and one replacement store. Net income was $5.2 million.
The company said gross profit as a percentage of sales increased to 27.4% in the third quarter of fiscal 2010, compared with 27.3% in the third quarter of the prior year primarily due to improved product mix, higher patronage dividends and lower inventory charges, partially offset by lower departmental gross margin percentages and increased warehouse assessment charges from Wakefern.
Net income was $16.5 million for the nine-month, year-to-date span, a decrease of 20%, while total sales of $919.1 million rose 2.4%.