LOS ANGELES — Arden Group here, corporate parent of Gelson's Markets, Encino, Calif., said Wednesday that earnings declined and sales increased for the third quarter, which ended Oct. 1.
Net income fo the 13-week period fell 2.7% to $3.4 million, while sales rose 4.4% to $104.7 million. The company said it attributed the sales increase primarily to inflation and an increase in the number of transactions. With 18 Gelson's Markets — the same number as last year — the increase in same-store sales was the same as total sales.
For the year to date, net income was up 1.1% to $12.7 million, while sales jumped 2.6% to $315 million. The company said operating income on a year-over-year basis was negatively impacted by increases in the chain's health and welfare contribution rate for the majority of its union employees in March 2010 and in February and September 2011.
Arden also said Gelson's employees in the United Food and Commercial Workers Union ratified new labor contracts in October on terms similar to those reached by the major chains in late September.
