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Third-quarter sales edge up at Ingles Markets

Earnings decrease reflects impact of prior-year tax changes

Russell Redman

August 9, 2019

2 Min Read
Ingles store_exterior shot.jpg
Ingles Markets

The Easter holiday calendar shift helped lift sales at Ingles Markets for its fiscal 2019 third quarter, but net income declined in the period as the company cycled through a year-ago tax benefit.

For the quarter ended June 29, Ingles totaled sales of $1.06 billion, up 2.7% from $1.03 billion a year earlier. This year’s Easter holiday occurred in April, benefitting the June quarter, while last year the holiday came in March, benefitting the March quarter, the Asheville, N.C.-based retailer noted.

Retail grocery sales grew 2.4% to nearly $1.3 billion, with results up in all categories — grocery, nonfoods and perishables — except gasoline, where the number of gallons sold and average sale price decreased, according to Ingles.

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Ingles said perishables sales rose during the quarter.

Grocery same-store sales rose 4.3% year over year, excluding fuel sales and the impact of the Easter calendar shift. The number of customer transactions grew slightly and the average transaction size was up 3.6%, excluding gas, the company said.

Gross profit climbed 6.2% to $258.9 million and was 24.4% of sales compared with 23.6% in the prior-year period. Operating and administrative expenses edged up 0.8% to $216.5 million, which Ingles attributed to higher personnel costs and other expenses to drive sales.

“Our strong sales growth continues to drive operating results and provide capital for the ongoing improvement of our store base,” Chairman Robert Ingle said in a statement.

Related:First-half sales up at Ingles Markets

At the bottom line, net earnings came in at $23.5 million for the 2019 third quarter, down from $24.5 million a year ago. Ingles noted that the decrease reflects $10.6 million in income-tax expense reductions in the 2018 quarter due to lower tax rates and changes in certain tax calculation methods. Pretax income totaled $31.8 million in the 2019 quarter versus $18.5 million in the prior-year period.

Earnings per share (EPS) for Class A common stock was $1.19 ($1.16 diluted) in the 2019 quarter, compared with $1.24 ($1.21 diluted) a year earlier. The company’s Class B common stock had basic and diluted EPS of $1.08 versus $1.13 in the 2018 quarter.

For the fiscal year to date, Ingles had capital expenditures of $123.2 million, up from $120.5 million in the year-ago period. The company said spending is focused on stores already opened this fiscal year and locations slated stores to open later in the year, along with ongoing improvements to existing stores. Full-year capital expenditures are projected at $140 million to $180 million.

As of June 29, Ingles operated 199 supermarkets in the Carolinas, Georgia, Tennessee, Alabama and Virginia, compared with 200 a year ago.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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