By JAMES FINK
jfink@bizjournals.com | 716-541-1611

Tops Holding Corp., parent of Tops Markets LLC, reported a strong first quarter with net sales increasing nearly 8 percent.

Financial documents released by the Amherst-based Tops - the region's largest supermarket chain - showed first-quarter net sales of $717.3 million in the 16-week period ended April 23. Last year, it reported net sales of $665 million.

Inside sales rose 5.6 percent to $658.9 million, an increase of $34.9 million. It reflected the fact that Tops worked 55 former Penn Traffic supermarkets into its portfolio following the January 2010 acquisition of the former Syracuse-based supermarket chain.

Gas sales for Tops increased to $58.4 million. That was up $17.3 million and reflected rising costs, as well as a 15.2 percent increase in more gallons of fuel sold.

Tops opened four gas outlets at its supermarkets in the past year.

Gross profit rose 4.4 percent to $202.4 million, up from $193.8 million in 2010's first quarter.

Operating income increased to $17.6 million, compared with a $2.9 million loss last year. The turnaround was attributed to Tops closing 24 underperforming Penn Traffic outlets.

"Our solid operating income is an excellent indicator of our ability to leverage our system with increased volume," said Rick Mills, senior vice president and chief financial officer.

Tops operates 128 corporate stores and five franchised outlets in Western New York, Central New York and Northern Pennsylvania.

"Our strong results demonstrate the strength of our strategy to build our franchise, succeed in our markets by understanding our customers and create value with our sales and marketing approach," said Frank Curci, president and CEO.