The Fresh Market (TFM) stock jumped nearly 12% before falling back to earth after net sales increased 17% in Q1.
Comparable store sales were up 2.5%.
The growth beat analyst expectations.
While TFM saw a 7% year-over-year decline in adjusted earnings, it beat analysts’ estimates by 0.5%. The 17.6% net sales increase to $431 million for the quarter topped Wall Street expectations of $421.2 million.
“We are pleased with our first quarter performance, especially given the weather-challenged start to the quarter in the majority of our markets. Our positive comparable store sales and steady trends in customer traffic throughout the quarter were a result of our ongoing promotional successes and decision to hold prices steady despite higher food costs,” Craig Carlock, President and Chief Executive Officer, said in a statement.
The quarter also saw the company focusing on store penetration in existing markets — and the opening of seven new stores.
Over the last three months, TFM’s stock had been down some 11% — after missing analyst estimates and downgrading its own outlook. The sales increases from a busy Easter season (and a rebound from winter months) was enough to push The Fresh Market into better standing.
TFM is down 27% year to date.