Village Super Market, Springfield, N.J., said a charge for future lease obligations pushed net income down while sales increased for the second quarter, which ended Jan. 25.
Net income for the 13-week quarter fell 69.1% to $2.8 million — due in part to a $2-million charge for future lease obligations due to the closure of a store in Morris Plains, N.J., and an $840,000 boost in the prior year’s second quarter following a partnership distribution. Excluding the two items, net income declined 42%, the company noted.
Sales for the quarter rose 2.6% to $392.2 million, reflecting the opening of a replacement store in Hanover Township, N.J., in November. Same-store sales were flat.
Read more: Tax ruling leads to Q1 loss at Village
For the first half the company reported a loss of $4 million — including a $10 million charge resulting from an unfavorable ruling by the New Jersey Tax Court and the charge for future lease obligations — while sales increased 1.2% to $749.3 million and same-store sales were flat.
Village, a member of the Wakefern Food Corp. cooperative, operates 29 supermarkets under the ShopRite name in New Jersey, Maryland and eastern Pennsylvania.
|Suggested Categories||More from Supermarketnews|