Village Super Market Posts Q1 Loss On Tax Charge

(RTTNews) - Village Super Market, Inc. (VLGEA) reported a net loss for the first quarter of $6.8 million, compared to net income of $5.9 million for the year-ago quarter.

The latest quarter results include a $10.1 million charge to income tax expense relating to prior years as a result of an unfavorable court decision by the New Jersey Tax Court related to a dispute over nexus, while the year-ago quarter results included income from the national credit card lawsuit of $693,000 and a charge for the settlement of a landlord dispute of $376,000.

Sales for the first quarter fell 3% to $357.05 million from $358.15 million a year ago.

Same store sales for the quarter also decreased .3% due to three store openings by competitors and very high sales in the last week of the first quarter of the prior year as customers prepared for hurricane Sandy. These decreases were partially offset by increased sales in two stores that were remodeled last year.

The company expects same store sales in fiscal 2014 to increase from .5% to 2.5%.