SPRINGFIELD, N.J. — Village Super Market here on Wednesday said a $10 million tax ruling led it to post a loss of $6.8 million in its first fiscal quarter.
The company said sales for the quarter, which ended Oct. 26, were about $357 million, down 0.3% from a year ago. Same-store sales also fell 0.3%.
In the year-ago quarter, net income totaled $5.9 million, including $693,000 from a national credit-card suit settlement and a charge of $376,000 to settle a landlord dispute.
The tax ruling in the recent quarter related to prior years “as a result of an unfavorable court decision by the New Jersey Taxation Court related to a dispute over nexus,” Village said in a statement. Village said that excluding the extraordinary items from both years, net income in the first quarter declined 42% vs. a year ago primarily due to higher sales in the last week of the year-ago quarter due to Hurricane Sandy, lower gross profit percentages, higher operating expenses as a percentage of sales and an increase in the income tax rate as a result of the New Jersey Tax Court decision.
Village Super Market operates a chain of 29 supermarkets under the ShopRite name in New Jersey, Maryland and eastern Pennsylvania.
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