Village Super Market profit slumps during Q3

Several factors conspired to produce a drop in net income at Village Super Market Inc. during the third quarter of fiscal 2016, despite a slight bump in sales.



Net income was $5.88 million in the quarter, down 55% from $13.21 million in the third quarter of the previous fiscal year. The prior year period including a net gain from the recovery of insurance receivables related to Superstorm Sandy and a tax benefit a result of a settlement with the New Jersey Division of Taxation.



In addition, profit was hampered by lower sales in the first week of the third quarter of fiscal 2016 due to the impact of Winter Storm Jonas, a lower gross profit percentage and higher operating and administrative expenses.



Sales were $387.9 million, an increase of 0.2% from $387.1 million. Same-store sales also increased 0.2%, primarily due to the closing of two competitor stores and continued sales growth in the expanded or replaced stores in Stirling and Greater Morristown, New Jersey.



The company expects same-store sales in fiscal 2016 to range from a 0.5% to 1.5% increase.



Village Super Market operates a chain of 29 supermarkets under the ShopRite name in New Jersey, Maryland and northeastern Pennsylvania.