Tops Holding Corp., parent company of Tops Markets LLC, reported a jump in net income in the second quarter. The company cited cost containment strategies and successful marketing campaigns.
Tops Holding reported a net income of $9.5 million for the quarter, soaring from $300,000 a year ago. Net sales for the quarter were $562.4 million, up slightly from $559.5 million in 2011, according to documents filed with the Securities and Exchange Commission.
Company officials said that operating expenses during the second quarter decreased 2.4 percent. Tops reported operating income of $23.6 million, up from $14.9 million a year ago. Operating income made up just over 4 percent of the company’s net sales for the quarter.
“This was a strong quarter for Tops, with improved margins, sharply higher profitability and strong cash generation,” said Frank Curci, president and CEO of Tops. “We are encouraged by our current trends and expect to build on this momentum throughout the remainder of the year as we continue promotional and marketing initiatives tailored to meet the shopping needs of our customers.”
Last month, Tops announced an agreement with GU Markets LLC to acquire 21 supermarkets in Upstate New York and Vermont. Tops said it expects to close on the deal this fall.
Based in Williamsville, Erie County, the company has more than 125 locations in Upstate New York and Pennsylvania, including more than 20 stores in Greater Rochester.
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