The parent of regional US retailer Tops Markets has reported a fall in third-quarter profit amid lower same-store sales.
Tops Holding Corp. booked net income of US$4.7m for the 12 weeks to 6 October, down from $6.4m a year earlier.
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An increase in cost of goods sold and distribution costs offset lower operating expenses and hit earnings. Operating income was $18.4m, compared to $20.7m a year ago.
Net sales were dipped from $538.6m to $538.4m but notably Tops’ same-store sales fell 1.3% hit by the switch by some branded drugs to generic names. Without that impact, same-store sales fell 0.7%.
CFO Rick Mills said: “We believe we have the right strategies, structure and talent in place to succeed in our markets. We continue to identify additional opportunities to improve efficiencies that will drive operating performance well into the future and translate into sustainable growth with strengthened margins and strong cash generation capabilities.”
Year-on-year, Tops’ net income for the first three quarters of the year was $14.9m, against $4.6m a year earlier.
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