Arden Group Inc. said Wednesday that its first-quarter net income dropped 12 percent on lower grocery sales.

The Los Angeles parent of the upscale supermarket chain. Gelson’s Markets reported net income of $5.1 million ($1.61 per share) for the quarter ended April 4, compared with $5.8 million ($1.85) a year earlier. Revenue fell 4 percent to less than $105 million.

Same-store sales were down 3.7 percent, which the company blamed on the soft economy and cost-cutting by competitors. Gelson’s operates 18 supermarkets in Southern California.

Shares closed up $1.97, or 2 percent, to $96.45 on the Nasdaq.