New Stores, Holiday Sales Drive Ingles' Q1 Gains

A strong holiday selling season, two newly opened stores and benefits from recent tax legislation helped to drive improved sales and earnings at Ingles Markets during its fiscal first quarter, the company said.

The Asheville, N.C.-based retailer reported sales of $1 billion, a 3.2% increase, and non-fuel comparable-store sales improved by 2.2% during the quarter, which ended Dec. 30.

Net earnings in the quarter totaled $45.1 million, a 226.8% increase. Earnings in the current quatrter include a reduction in non-cash deferred tax expense of $26.7 million from changes in federal tax law.

Gross profit of $244.7 million, or 24.1% of sales, was flat from the same quarter last year, Ingles said.

The company said it planned to spend between $120 million and $160 million on capital investment projects in the current fiscal year. Ingles spent $127.7 million in 2017.

Ingles operates 200 supermarkets in six Southeast states.