LOS ANGELES — Arden Group, parent company of Gelson's Markets, said the shutdown of one of its 18 supermarkets contributed to a drop in earnings during the first quarter ended March 31.
The company said net income for the 13-week period fell 48.6% to $2.9 million, while sales increased 2.9% to $107.2 million and same-store sales, excluding the closed store, rose 3.7%, which the company attributed to inflation and an increase in the number of transactions.
Arden Q4 Earnings Drop, Sales Rise
In late February Arden closed the Gelson's store in Northridge, Calif., and reached an agreement to assign the store lease to a third party. As part of the agreement, Gelson's paid the third party a lease assignment fee of $1.85 million during the second quarter and transferred various equipment to it.
