The Fresh Market Inc. (TFM) reported that its first-quarter net income rose to $22.1 million or $0.46 per share, from $19.3 million or $0.40 per share last year.
On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.44 for the quarter. Analysts' estimates typically exclude special items.
The company's gross profit increased 14.8% in the first quarter of fiscal 2013. Gross margin rate increased 60 basis points to 35.3% compared to the corresponding prior year period. The company said the increase in its gross margin rate was primarily attributable to an increase in the merchandise margin, and also reflected a 10 basis point reduction in LIFO expense as a percentage of sales.
Net sales increased 12.9% to $366.6 million from $324.8 million last year. Analysts expected revenue of $369.69 million for the quarter.
Comparable store sales increased 3.0%. The company said the comparable store sales increase resulted from a 2.4% increase in average transaction size and a 0.6% increase in the number of transactions.
The company expects fiscal 2013 profit per share to be in the range of $1.51 to $1.58. Analysts expect the company to report fiscal 2013 profit per share of $1.56.
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