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Ingles Markets posts another double-digit sales gain in Q3

Regional grocer sees net earnings more than double

Russell Redman

August 6, 2020

2 Min Read
Ingles Markets-supermarket exterior.png
Net sales rose 12% and net income jumped 167% in the third quarter, Ingles reported.Ingles Markets

Coronavirus-driven purchases helped lift net sales at Ingles Markets by 12% in the fiscal 2020 third quarter.

For the quarter ended June 27, net sales came in at $1.19 billion versus $1.06 billion a year earlier, Ingles said Thursday. The 12% rise continued momentum from a 14% net sales gain in the second quarter ended March 28, about two weeks after the COVID-19 pandemic was declared a national emergency.

Ingles didn’t report retail comparable-store sales data for the third quarter and couldn’t immediately be reached for comment. The Asheville, N.C.-based regional grocer saw retail comp sales climb 17.5% excluding fuel in the second quarter.

At the bottom line, third-quarter net income surged 167% to $62.8 million from $23.5 million a year ago. Diluted earnings per share (EPS) for Class A common stock was $3.10 for the 2020 quarter versus $1.16 in the prior-year period. EPS for Class B common stock were $2.89 at the quarter’s end, up from $1.08 a year earlier.

Third-quarter gross profit jumped 25.4% to $324.7 million, or 27.3% of sales, from $258.9 million, or 24.4% of sales, in the fiscal 2019 quarter.

Operating and administrative expenses rose to $234.6 million in the third quarter from $216.5 million a year ago, mainly due to higher personnel costs to support additional COVID-19 safety measures, including a second appreciation bonus payment to employees, Ingles said.

Related:Ingles Markets plans second worker bonus for COVID-19 efforts

On June 24, the company announced a bonus of $300 for full-time and $150 for part-time active retail, distribution and corporate associates to be paid at the end of July. In early April, the retailer also unveiled plans to hire more than 5,000 additional workers to support staff in its stores and distribution center to meet extra demands brought by the pandemic.

“We are proud to provide service to our customers during such a disruptive time,” Chairman Robert Ingle said in a statement on Thursday. “This is made possible by the dedication of our associates, who continue to maintain store conditions at the highest level.”

For the year to date, net sales are up 9.2% to $3.41 billion versus a year ago. Net income for the nine months nearly doubled, coming in at $120.7 million. Diluted EPS for Class A Common Stock was $5.96, while the EPS Class B Common Stock was $5.57.

Ingles finished the third quarter with 197 supermarkets in the Carolinas, Georgia, Tennessee, Alabama and Virginia, compared with 199 a year ago.

The retailer said capital expenditures for the year to date totaled $78.9 million, compared with $123.2 million a year earlier, and have focused on current and upcoming stores. Capital spending for fiscal 2020 is projected at $100 million to $120 million, including ongoing improvements to the existing store base, according to the company.

Related:Ingles Markets’ comparable-store sales rise over 17%

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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