Village Super Market Reports Q1 Results and Future Outlook
Village Super Market, Inc. Financial Performance Overview
Today, Village Super Market, Inc. (NASDAQ: VLGEA) announced its financial results for the first quarter, showcasing a detailed analysis of its operations for the period that concluded on October 25, 2025. The results shed light on how the company navigated through a competitive landscape and benefitted from various strategic initiatives.
Key Highlights from the First Quarter
The first quarter revealed some significant shifts in financial performance:
Net Income Insights
The company generated a net income amounting to $12 million, reflecting a 6% decline from the $12.8 million reported in the same quarter of the previous year. Despite the decrease, the adjusted net income was reported at $12.5 million, a slight decrease of 2% compared to last year’s adjusted figure.
Sales Growth
Village Super Market witnessed a sales increase of 4.5%, totaling $582.6 million for the 13 weeks ending October 25, 2025, compared to $557.7 million from the prior year. This growth was bolstered by a 2.5% rise in same-store sales, showcasing resilience in market demand.
Analyzing Sales Trends
In addition to new store openings, digital sales experienced a remarkable surge—up 14%—contributing to the same-store sales increase reported during the quarter. The recent opening of a replacement store in Watchung, New Jersey, also played a critical role in amplifying overall sales performance.
Gross Profit Margins
The gross profit margin as a percentage of sales declined to 28.31% from 29.03% year-over-year. This shift was primarily due to factors such as lower patronage dividends and rebates received, together with a change in product mix and higher promotional expenses.
Operational Expenses Overview
Operating and administrative expenses represented 24.28% of sales—down from 24.66%—indicating effective management of costs. Adjusted operating and administrative expenses further showcased a reduction, achieving 24.15% of sales. Significant savings stemmed from lower employee costs and reduced advertising expenditures.
Looking at Contributions and Expenses
In line with fiscal responsibility, the company noted an uptick in depreciation and amortization expenses due to ongoing capital investments. Contrarily, interest expenses decreased, attributed to lower average debt balances. Interest income also showed a decline, mainly due to reduced rates on variable-rate notes receivable.
Understanding the Effective Tax Rate
During the quarter, the effective income tax rate rose slightly to 31.4% compared to 31.2% in the previous year. Such fluctuations are attributed to changing regulations and operational adjustments within the business environment.
Future Outlook: Expecting Growth
Village Super Market operates a robust network of 34 supermarkets under known banners such as ShopRite and Fairway along with three Gourmet Garage specialty markets in New York City. This operational footprint positions the company for long-term growth as it continues to expand in competitive markets.
Building on Digital Integrations
With a definitive focus on digital sales channels and store renovations, Village Super Market aims to enhance customer experiences while maintaining operational efficiency.
Frequently Asked Questions
What were the notable financial results for Village Super Market this quarter?
Village Super Market reported a net income of $12 million and total sales of $582.6 million for the first quarter.
How did digital sales impact overall performance?
Digital sales increased by 14%, significantly contributing to the growth of same-store sales.
What resulted in the decline in gross profit margin?
The margin decline is primarily attributed to lower patronage dividends, product mix changes, and increased promotional spending.
Are there any plans for future expansions?
Yes, the company is focused on expanding its store network and enhancing its digital presence to drive growth.
Who should be contacted for more information?
For further details, John Van Orden, CFO, can be reached at (973) 467-2200 or via email at villageinvestorrelations@wakefern.com.
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