SPRINGFIELD, N.J. — Village Super Market here on Tuesday said net income for the fiscal second quarter fell 2% compared with year-ago results, largely due to lower gross profit as a percent of sales.
The company, which operates 26 ShopRites in New Jersey and Pennsylvania, said same-store sales for the quarter, which ended Jan. 29, were up 3.1%. Net income for the period totaled $6.6 million, while total sales increased 4.6%, to $329.9 million.
"Sales continue to be impacted by changing consumer behavior due to economic weakness, which has resulted in increased sale item penetration and trading down," the company said.
Gross profit as a percentage of sales decreased to 26.9% in the second vs. 27.3% in the year-ago second quarter. Operating and administrative expense as a percentage of sales also decreased, however, to 21.9% in the recent quarter vs. 22.3% last year.
Through the first two quarters net income was down 6%, to $10.6 million, on a 3.1% increase in sales, to $637.3 million. Same store sales increased 1.6% for the six-month span.