Shares in Ingles Markets dropped 8% today (3 February) after the US retailer reported lower earnings for its first quarter.
Net income fell 17.6% to US$9.5m for the three months to 28 December.
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Net sales were up 1.1% finishing at $945.1m. However, Ingles said grocery segment comparable-store sales dropped 0.8%, as, despite an increase in weekly customer visits, the average transaction amount decreased.
Sales came under pressure as the retailer lowered prices, a tactic defended by CEO Robert Ingle.
He said: “We wanted to keep prices low for our customers throughout the holiday season. We believe these actions strengthened ties with our customers and will benefit us in the long run.”
At the end of last year, the company booked an increase in annual sales and underlying profit. Net sales were up 0.5% and comparable store sales were up 1.8%.
For the full unaudited results, click here.
