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SPRINGFIELD, N.J., Dec. 8, 2010 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (Nasdaq:VLGEA) today reported its results of operations for the first quarter ended October 30, 2010.
Net income was $3,934,000 in the first quarter of fiscal 2011, a decrease of 13% from the first quarter of the prior year. Net income decreased primarily due to lower gross profit as a percentage of sales and flat same store sales.
Sales were $307,397,000 in the first quarter of fiscal 2011, an increase of 1.5% compared to the first quarter of the prior year. Sales increased primarily due to the opening of the Washington, NJ replacement store on February 21, 2010. Same store sales were flat in the first quarter of fiscal 2011 compared to the prior year as improved sales in the Marmora store, which opened in May 2009 and is now included in same store sales, were offset by reduced sales in two stores due to competitive store openings. Inflation and deflation had minimal impact on sales in the first quarter of fiscal 2011. Sales continue to be impacted by changing consumer behavior due to economic weakness, which has resulted in increased coupon usage, sale item penetration and trading down. The Company expects same store sales in fiscal 2011, excluding the impact of the 53
rd week in the prior year, to range from 0% to 2%.
Gross profit as a percentage of sales decreased to 26.3% in the first quarter of fiscal 2011 compared to 26.6% in the first quarter of the prior year due to higher promotional spending and increased warehouse assessment charges from Wakefern, partially offset by higher patronage dividends.
Operating and administrative expense as a percentage of sales decreased to 22.5% in the first quarter of fiscal 2011 compared to 22.6% in the first quarter of the prior year primarily due to lower workers compensation insurance costs and savings from the solar energy project at the Garwood store.