Ingles Markets' Q2 sales increase while net income drops

ASHEVILLE, N.C. A southeastern supermarket chain reported on Friday a 6% jump in its second-quarter net sales.

Ingles Markets said its net sales increased $47.8 million to $837 million from the year-ago period, while gross profit for second quarter 2010 increased 2.6% to $185.9 million, an increase of $4.8 million, compared with the second quarter of last fiscal year.

Meanwhile, the chain's net income totaled $5.6 million, a 28.2% drop compared with the year-ago period. Net income, as a percentage of sales, was 0.7% for second quarter 2010, and 1% for second quarter 2009.

CEO Robert P. Ingle stated, “In this challenging economic and competitive environment we continue to focus on growth in sales and customer traffic. We’re experiencing success in both those areas even though it’s not yet reflected in our bottom line.”

As of March 27, Ingles operated 202 stores in six states.