GREENSBORO, NC - Net sales for specialty grocer The Fresh Market increased 15.1% to $419.5 million, beating analysts’ expectations for the third quarter of fiscal 2014. This double digit increase was complemented by a 3.3% increase in comparable store sales, driven by a 3.0% increase in the number of transactions and a 0.3% increase in average transaction size, according to the report.

“We are pleased with our fiscal third quarter results,” said Craig Carlock, President and CEO. “We generated a 3.3% increase in comparable store sales as we benefited from our efforts to drive customer traffic and grow basket size in a more competitive environment. As we look to the fourth quarter, we are focused on providing exceptional food shopping experiences to our customers during the holiday season.”

During its Q3 conference call on Thursday, Carlock was confident that the company can deliver double-digit store unit growth, especially in the Southeast U.S. The Fresh Market aims to add more than 70 stores in the next three years with approximately half of those stores opening in the Southeast.

“Ultimately, we believe that we will be able to double our store base in the Southeast,” said Carlock.

The Fresh Market opened six new stores during the quarter, including stores in New Jersey, Virginia, Tennessee, Florida, California, and Iowa. As of October 26, 2014, The Fresh Market operated 164 stores in 27 states.

Carlock also re-affirmed the company’s focus on increasing customer frequency with its direct mail campaigns. Tests of the direct mail offers have proven positive so far, and Carlock said he expects the campaign to “attract new customers through increased brand awareness particularly during the holiday season."

Other highlights from the Q3 2014 financial report include:

• Adjusted EBITDA was $39.1 million, a 13.3% increase from $34.5 million during the same period last year
• Gross profit increased 13.1%, or $16.0 million, to $138.1 million, compared to Q3 2013
• Operating income was $24.3 million, or 5.8% of sales, in Q3 2014, compared to $18.9 million, or 5.2% of sales, during the same period last year
• EPS under U.S. GAAP increased 34.4% to $0.31 per diluted share, compared to $0.23 per diluted share during the same period last year

In closing, Carlock announced, “We intend to focus on increasing market share by providing the outstanding food quality, customer service, and store environment that are the foundation of our business model. Our team remains committed to finding the right mix of traffic and sales drivers while being mindful of our margins to ensure sustainable and increased profitability long term.”

Congrats on the solid growth this quarter, The Fresh Market!

The Fresh Market