Ingles Markets reported net sales of $1.37 billion for the first quarter of fiscal 2026 ended Dec. 27, a 6.6 percent increase compared with $1.29 billion for the same period last year, the Asheville, North Carolina-based grocer announced Feb. 5.
Net income totaled $28.1 million for the first quarter compared with $16.6 million for the first quarter of fiscal 2025, a 69 percent increase.
“We are pleased with the results and want to thank our associates for their continued commitment and efforts throughout the holiday season,” said Robert P. Ingle II, chairman of the board.
Gross profit margin expands to 24.4 percent
Gross profit for the first quarter totaled $334.6 million, or 24.4 percent of sales, compared with $301.1 million, or 23.4 percent of sales, for the first quarter of fiscal 2025.
Operating and administrative expenses for the first quarter totaled $295.4 million compared with $280.7 million for the first quarter of fiscal 2025.
Interest expense totaled $4.6 million for the first quarter compared with $5.0 million for the first quarter of fiscal 2025. Total debt at the end of the first quarter was $511.5 million compared with $529.4 million at the end of the first quarter of fiscal 2025.
Earnings per share increase across both stock classes
Basic and diluted earnings per share for Class A Common Stock were $1.51 and $1.48, respectively, for the quarter ended Dec. 27, compared with $0.89 and $0.87, respectively, for the quarter ended Dec. 28, 2024. Basic and diluted earnings per share for Class B Common Stock were each $1.38 for the quarter ended Dec. 27, 2025, compared with $0.81 for the quarter ended Dec. 28, 2024.
Capital expenditures for the first quarter totaled $36.4 million compared with $37.8 million for the first quarter of fiscal 2025.
As of Dec. 27, the company had only a single letter of credit in the amount of $500,000 outstanding under its $150 million line of credit and otherwise had no borrowings outstanding thereunder. The company said its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be sufficient to meet planned capital expenditures, debt service and working capital requirements for the foreseeable future.
Hurricane Helene recovery continues
Ingles Markets operates 197 supermarkets in six southeastern states. As of Dec. 27, three of the four stores temporarily closed due to damage sustained in Hurricane Helene remained closed, but are expected to reopen during 2026 and 2027.
In conjunction with its supermarket operations, the company operates neighborhood shopping centers, most of which contain an Ingles supermarket. The company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers.
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