Ingles Markets posted net sales of $1.37 billion for the third quarter of fiscal 2026 ended June 27, up from $1.35 billion a year earlier, with net income decreasing to $25.9 million from $26.2 million, the Asheville, North Carolina-based grocer reported Aug. 6.
Gross profit was 24.3 percent in both the 2026 and 2025 third quarters, with 2026 coming in at $332.4 million and 2025 at $327.3 million. Operating and administrative expenses rose to $298 million from $290.1 million in the prior-year quarter, absorbing the sales gain and more. Interest expense fell to $4.5 million in Q3 2026 from $4.9 million in 2025.
Class A basic and diluted earnings per share were $1.39 and $1.36, compared with $1.41 and $1.38 a year ago. Class B earnings per share were $1.27, down from $1.28.
“We are pleased with our results and thank our associates for their continued focus on our customers’ experience as we strive to provide value, selection and quality offerings,” said Robert P. Ingle II, chairman of the board.
Nine-month results
The year-to-date picture is considerably better than the quarter. Net sales for the nine months reached $4.05 billion versus $3.97 billion in the prior-year period, while net income climbed to $78.3 million from $57.9 million, a gain of roughly 35 percent.
Most of that came from margin. Gross profit rose to $992.3 million, or 24.5 percent of sales, from $939.4 million, or 23.7 percent, an improvement of 0.8 percentage points. Operating and administrative expenses increased to $884.6 million from $860 million a year ago.
Class A basic and diluted earnings per share were $4.21 and $4.12 for the nine months, up from $3.11 and $3.05. Class B earnings per share were $3.83, up from $2.83.
Interest expense for the period fell to $13.6 million from $14.7 million. Total debt stood at $500.5 million as of June 27, down from $518 million a year earlier.
Capital spending pulls back
Capital expenditures totaled $76.4 million for the nine months, down from $91.4 million in the year-ago period. The company expects full-year spending of $120 million-$130 million, which implies roughly $44 million to $54 million in the fourth quarter.
Ingles had a single $900,000 letter of credit outstanding under its $150 million line of credit and no other borrowings.
Interest expense for the period fell to $13.6 million from $14.7 million. Total debt stood at $500.5 million as of June 27, down from $518 million a year earlier.
Ingles currently operates 195 supermarkets in six southeastern states, down from 197 earlier in the fiscal year. Three of the four stores closed by Hurricane Helene damage remain shut and are expected to reopen at various points in 2026 and 2027.
Ingles also operates neighborhood shopping centers, most anchored by an Ingles supermarket, and a fluid dairy that supplies its stores and outside customers.
The results are the second full quarter reported since the company’s shareholders elected Rory Held to the board April 30. Held was the nominee of activist investor Summer Road LLC, the family investment office of David Sackler, which argued during the proxy fight that Ingles’ improving numbers were being measured against two years of weak comparisons, noting that first-quarter sales trailed pre-Helene fiscal 2024 by 7.3 percent.