IMKTA

Key takeaways

• Revenue rose 1.6% to $1,368.3M, the first year-over-year increase in three quarters, driven by a recovery in comparable store sales as the effects of Hurricane Helene continued to fade.
• Gross margin was 24.3%, down 0.6 points from the prior quarter's 24.9% and essentially flat against the 24.5% reported a year ago, as the benefit of lower cost of goods sold and higher vendor allowances that lifted Q1 did not repeat at the same scale.
• Operating income fell 7.7% to $34.5M as operating and administrative expenses rose, compressing operating margin to 2.5% from 2.6% a year ago and 2.6% in the prior quarter.