Asheville, N.C.-based Ingles Markets Inc. recently published its financial results for the third quarter ending June 29, revealing a decline in both net sales and net income compared to the previous year. Net sales reached $1.39 billion, a decrease from $1.43 billion recorded in the same quarter of 2023. The company’s gross profit followed suit, amounting to $329.8 million, or 23.7% of sales, slightly down from $338.1 million last year.

The reported net income dropped significantly to $31.7 million, a notable decline from $48.3 million inQ3 2023. Operating and administrative expenses climbed to $286.3 million, up from $270.9 million year-on-year. These factors contributed to a dip in earnings per share (EPS) for Class A Common Stock, which decreased to $1.71 and $1.67 from last year’s figures of $2.60 and $2.54 respectively.

For the fiscal year-to-date, Ingles reported net sales of $4.24 billion against $4.31 billion from the previous year. Their gross profit for this period remained stable at $1.00 billion, though net income fell to $107.0 million, down from $158.2 million previously.

Chairman Robert P. Ingle II affirmed the firm’s commitment to providing excellent customer service with affordable products. Despite these declines, Ingles maintains confidence in its financial stability, citing no outstanding borrowings under its $150.0 million line of credit and planning substantial capital expenditures of approximately $170 million to $190 million for the full fiscal year.

Notably, Ingles operates 198 supermarkets across six southeastern states and is recognized for its significant real estate holdings, owning nearly all the shopping centers in which its stores operate. Such business strategies may present challenges, particularly as competitors seek to establish new grocery outlets in the region.