Street finds Fresh Market Q2 results stale; 18 new stores planned

Greensboro, N.C. —The Fresh Market Inc. did not meet Wall Street expectations for profit or revenue in the second quarter of fiscal 2015. The grocer reported net income of $17.47 million, up 53% from $11.39 million the prior period.

Higher gross margin and pretax income drove profit growth. Net sales increased 5% to $442.1 million from $422.23 million, and same-store sales decreased 1%. The Fresh Market plans to open 18 new stores and remodel or refresh nine to 10 stores during the full fiscal year.

“Our second quarter results reflect changes in our pricing and promotional investments, which were less effective than anticipated in a more challenging macro environment,” said Sean Crane, interim CEO.

For the full fiscal year, Fresh Market expects total net sales growth of 5-7% and same-store sales decline of 1-2.5%.