Village Super Market, which operates a chain of 29 supermarkets under the ShopRite name in New Jersey, Maryland and eastern Pennsylvania, saw net income fall 69% during the second quarter, compared to the same period in the prior year, driven in part by flat same-store sales.
Net income fell to $2.8 million from $9.1 million. Along with flat same-store sales, the company cited a charge for future lease obligations due to the closure of a store, an $840,000 partnership distribution realized in the second quarter of fiscal 2013, higher operating expenses as a percentage of sales and an increase in the income tax rate as a result of an unfavorable New Jersey Tax Court decision as all driving the substantial decline.
Net sales fared better, rising 2.6% to $392.2 million from $382.1 million. The company expects same-store sales in fiscal 2014 to range from a decrease of .5% to an increase of 1%.