Fresh Market beats Street on profit, misses sales; will open 19 stores

Greensboro, N.C. – It was a mixed first quarter for The Fresh Market Inc. as the grocery retailer met Wall Street expectations for profit but fell short on sales. Net income totaled $15.17 million, down 8% from $16.57 million.

Higher operating expenses drove the reduction in net income. Sales increased 7% to $462.04 million from $431 million. Same-store sales dropped 0.1%.

During the fiscal year, The Fresh Market expects to open approximately 19 new stores, with two new stores opening in the first quarter; five to six new stores opening in the second quarter; and 11 to 12 new stores opening in the second half of the year. The retailer will also remodel or refresh 10 stores, with the majority completed in the first half of the year

“These results demonstrate our ability to leverage expenses with relatively flat same-store sales and we believe this flexibility will enable us to invest in initiatives and help increase customer frequency and attract new customers as we grow our store base and position The Fresh Market for long-term growth,” said Sean Crane, interim CEO.

During fiscal 2015, The Fresh Market expects total net sales growth of approximately 9% to 11%, and same-store sales rose 1-3%.