The Fresh Market Announces Leadership Changes

GREENSBORO, N.C.--(BUSINESS WIRE)--

The Fresh Market, Inc. TFM, a growing specialty grocery retailer, today announced that the Board of Directors appointed Sean Crane, Executive Vice President and Chief Operating Officer, as Interim Chief Executive Officer, effective immediately. Craig Carlock, President and Chief Executive Officer, and a member of the Board of Directors, has left the Company and has resigned as a member of the Board. The Company's Board of Directors has retained a national executive search firm to assist in identifying and evaluating candidates for the position of President and CEO.

Ray Berry, founder of the Company and Chairman of the Board of Directors, commented, “The Board and I would like to thank Craig for his many years of service and significant contributions to The Fresh Market. Under Craig's leadership, the Company successfully transitioned from a private to a public company and experienced five consecutive years of increased sales and earnings. The Company is well positioned, both culturally and financially, for future success, and has a significant opportunity, through its unique and differentiated grocery shopping experience, to gain share in existing markets and expand into new markets. I further believe meaningful opportunities exist to improve profit margins through both structural and operational initiatives.” Mr. Berry also stated, “The Board is focused on identifying the right candidate to lead The Fresh Market through its next phases of growth, while providing opportunities for our employees and delivering greater value to our stockholders.”

Sean Crane, Interim CEO, is a seasoned executive with fourteen years of senior management experience with The Fresh Market, most recently serving as Executive Vice President and Chief Operating Officer (2012-present), Senior Vice President, Store Operations (2006-2012), and Senior Vice President, Real Estate and Development (2005-2006). Additionally, Mr. Crane served as Interim Chief Financial Officer from December 2012 to June 2013.

Mr. Berry continued, “Sean is a strong executive and a proven leader, with significant experience and knowledge of the Company and its operations. He has been instrumental in the development and execution of The Fresh Market's growth strategies and a key player in its success. Sean has the Board's full support to continue executing the Company's growth strategies and initiatives.”

Fiscal 2014 Outlook

Based on quarter-to-date trends, the Company reaffirms its fiscal 2014 guidance, provided on November 20, 2014, of comparable store sales growth of 2.5% to 3.5% and adjusted earnings of $1.56 to $1.64 per diluted share. As a reminder, this guidance excludes anticipated store closure and exit costs of approximately $0.17 per diluted share related to previously announced store closings. Further, this guidance now excludes approximately $0.03 of costs per diluted share related to the aforementioned leadership changes. Including both the store closure and exit costs, as well as the costs related to the leadership changes, diluted earnings per share determined in accordance with U.S. generally accepted accounting principles (“GAAP”) are now expected to be $1.36 to $1.44. Adjusted earnings per share is a non-GAAP financial measure and should not be viewed as a substitute for financial measures prepared in accordance with GAAP.

About The Fresh Market, Inc.

Founded in 1982, The Fresh Market, Inc. is a specialty grocery retailer focused on providing high-quality products in a unique and inviting atmosphere with a high level of customer service. As of January 12, 2015, the Company operates 168 stores in 27 states across the United States. For more information, please visit www.thefreshmarket.com.

Non-GAAP Financial Measures

While the Company reports financial results in accordance with US generally accepted accounting principles (GAAP), we also provide certain non-GAAP operating performance measures. This non-GAAP information is provided as a supplement, not as a substitute for measures of financial performance prepared in accordance with GAAP. We use this information internally to make operating decisions, and believe it is helpful to investors because it allows period-to-period comparisons of our ongoing operating results. The information can also be used to perform trend analyses and to better identify operating trends that may otherwise be masked or distorted. Finally, the Company believes such information provides a higher degree of transparency. Investors should consider non-GAAP measures in addition to, not as a substitute for, measures of financial performance prepared in accordance with GAAP.

Forward-Looking Statements: This document contains forward-looking statements that reflect our plans, estimates, and beliefs regarding future business and financial performance and financial condition, and include those in the "Fiscal 2014 Outlook" section above. These statements involve a number of risks and uncertainties. Any statements contained herein (including, but not limited to, statements to the effect that The Fresh Market or its management "anticipates," "plans," "estimates," "expects," "believes," and other similar expressions) that are not statements of historical fact should be considered forward-looking statements. The following are some of the factors that could cause actual future results to differ materially from those expressed in any forward-looking statements: accounting entries and adjustments at the close of a fiscal quarter; unexpected expenses and risks associated with our business; our ability to remain competitive in the areas of merchandise quality, price, breadth of selection, customer service and convenience; the effective management of our merchandise buying and inventory levels; the quality and safety of food products and other items that we may sell; our ability to anticipate and/or react to changes in customer demand; changes in economic and financial conditions, including U.S. fiscal and monetary policy, and the resulting impact on consumer confidence; other changes in consumer confidence and spending; unexpected consumer responses to promotional programs; unusual, unpredictable and/or severe weather conditions, including their effect on our supply chain and our store operations; the effectiveness of our logistics and supply chain model, including the ability of our third-party logistics providers to meet our product demands and restocking needs on a cost competitive basis; the execution and management of our store growth, including the availability and cost of acceptable real estate locations for new store openings, the capital that we utilize in connection with new store development and the anticipated time between lease execution and store opening; the mix of our new store openings as between build to suit sites and second-generation, as-is sites and as between existing markets and newer markets; the actions of third parties involved in our store growth activities, including property owners, landlords, property managers, contractors, subcontractors, government agencies, and current tenants who occupy one or more of our proposed new store locations, all of whom may be impacted by their financial condition, their lenders, their activities outside of those focused on our new store growth and other tenants, customers and business partners of theirs; impairment of recorded goodwill and other long-lived assets; global economies and credit and financial markets; our ability to maintain the security of electronic and other confidential and/or personal information; serious disruptions and catastrophic events; competition; personnel recruitment and retention; acquisitions and divestitures, including the ability to integrate successfully any such acquisitions; information systems and technology; commodity, energy, fuel, and other cost increases; compliance with laws, regulations and orders; changes in laws and regulations; outcomes of litigation and proceedings and the availability of insurance, indemnification, and other third-party coverage of any losses suffered in connection therewith; tax matters; numerous other matters of national, regional and global scale, including those of a political, economic, business, and competitive nature; and other factors as set forth from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statement, including any contained herein, speaks only as of the time of this release and we do not undertake to update or revise them as more information becomes available or to disclose any facts, events or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as may be required by any applicable securities laws.