Village swings to profit in Q1

Village Super Market on Wednesday said sales and profits improved in the fiscal first quarter, reflecting the performance of new replacement stores and improved sales in Maryland.

The Springfield, N.J.-based operator of 29 ShopRite stores reported $3.9 million in net earnings, compared with a $6.8 million loss in the same period a year ago. Excluding the effect of one-time adjustments in both periods, earnings improved by 53%, primarily due to the impact of replacement stores in Morristown, N.J., and Union, N.J. Sales of $379.7 million increased by 6.4%, also as a result of the replacement stores, while same-store sales showed a 1.6% increase, reflecting the improved sales performance of Village’s two stores in Maryland as well as product price inflation, offset by a decline in items sold.

Gross profit as a percentage of sales increased to 27.07% in the quarter compared to 26.24% in the first quarter of the prior year primarily due to lower promotional spending, increased departmental gross margin percentages, decreased warehouse assessment charges from supplier Wakefern and improved product mix.

Village said it anticipated same store sales would range between flat and a 2% increase for the fiscal year.

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