Sales and profits at Ingles Markets during the fiscal second quarter “rebounded nicely” from a slow start to the year, officials of the retailer said.
For the three-month period ended March 29, Ingles net income increased by 29.2% to $10.5 million on $947.8 million in sales, a 2.9% increase. Same-store sales, when adjusted for the timing of the Easter holiday, improved by 2.5%, Ron Freeman, CFO of the Asheville, N.C.-based retailer said.
In a conference call discussing results, Freeman said Ingles gained some sales benefit as a result of harsh winter weather. He also said holding the line on prices despite increasing costs in the meat department helped to win sales there — but cautioned that he wasn’t certain how long Ingles could do that, or whether prices would continue to rise.
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“We are absolutely committed to passing along the best prices that we possibly can to our customers, and we definitely demonstrated that by taking a little bit of reduced margins in those [meat] price increases so far,” Freeman said. “But it would be reckless of me to predict how we’ll behave with that if this [inflation] continues for another six, nine or 12 months.”
Profits and sales at Ingles were down in the first quarter.
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