Village Super Market on Wednesday said sales and comps were up by 2.6% in the fiscal first quarter but higher expenses for payroll, benefits and training weighed on profits.
The Springfield, N.J., operator of 29 ShopRite stores said sales for the period ended Oct. 24 totaled $389.5 million. Comp sales improved primarily due to larger replacement stores in Morristown and Union, N.J., and the expansion of a store in Sterling, N.J., along with a higher average transaction sizes.
Net income of $4.4 million in the period increased 14.3%, but when adjusted for charges in the year-ago period earnings were down by 21%, primarily due to higher operating and administrative expenses. Gross profit as a percent of sales was up slightly to 27.08%, reflecting lower promotional spending, partially offset by lower departmental margins.
Excluding the charges in the prior year, operating and administrative expense as percentage of sales increased 0.62%. The increase was primarily due to higher fringe benefit costs, payroll and legal and consulting fees. Payroll costs increased due primarily to the addition of Village Food Garden, ShopRite from Home and related training in the expanded Sterling store.
Village said it expected same-store sales to increase between 1% and 3% in the new fiscal year.
|Suggested Categories||More from Supermarket News|