Village Super Market, Inc. Reports Results for the First Quarter Ended October 26, 2024

Rhea-AI Summary

Village Super Market (VLGEA) reported strong Q1 FY2025 results with sales reaching $557.7 million, up 4.0% from $536.4 million in the prior year. The company achieved 2.4% same-store sales growth and an 8% increase in digital sales. Net income rose 11% to $12.8 million. Gross profit margin improved to 29.03% from 28.52%, driven by increased patronage dividends and reduced warehouse charges. Operating expenses increased to 24.66% of sales, primarily due to higher employee costs and digital sales fees. The company operates 34 ShopRite and Fairway supermarkets across four states, plus three Gourmet Garage specialty markets.

Positive

• Sales increased 4.0% to $557.7 million
• Same-store sales grew 2.4% with digital sales up 8%
• Net income increased 11% to $12.8 million
• Gross profit margin improved by 51 basis points to 29.03%
• Lower interest expense due to reduced debt balances

Negative

• Operating expenses increased to 24.66% of sales from 24.29%
• Higher employee costs due to wage increases and benefits
• Increased external fees from digital sales growth
• Higher utility costs
• Closure of a Gourmet Garage location

Insights

Financial Analyst

Strong quarterly performance with notable improvements across key metrics. $557.7M in sales represents a 4.0% increase, while net income grew 11% to $12.8M. The 2.4% same-store sales growth and 8% digital sales increase demonstrate healthy organic growth. Particularly impressive is the gross profit margin expansion to 29.03%, up from 28.52%, driven by improved patronage dividends and operational efficiencies. While operating expenses increased due to wage pressures and digital infrastructure costs, the company effectively managed these headwinds through cost controls and operating leverage. The reduced interest expense from lower debt levels and stable tax rate around 31.2% further support financial stability. The strategic moves with store portfolio management, including the Old Bridge replacement store opening and optimization of the Gourmet Garage footprint, indicate thoughtful expansion planning.

SPRINGFIELD, N.J., Dec. 03, 2024 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the first quarter ended October 26, 2024.

First Quarter Highlights

• Sales increased 4.0% and same store sales increased 2.4%
• Same store digital sales increased 8%
• Net income of $12.8 million, an increase of 11% compared to the first quarter of the prior year
  

First Quarter of Fiscal 2025 Results

Sales were $557.7 million in the 13 weeks ended October 26, 2024 compared to $536.4 million in the 13 weeks ended October 28, 2023. Sales increased due to an increase in same store sales of 2.4% and the opening of the Old Bridge, NJ replacement store on March 17, 2024 partially offset by the impact of the closure of a Gourmet Garage location on November 1, 2023. Same store sales increased due primarily to digital sales growth, higher pharmacy sales and continued growth in recently remodeled stores. New stores, replacement stores and stores with banner changes are included in same store sales in the quarter after the store has been in operation for four full quarters. Store renovations and expansions are included in same store sales immediately.

Gross profit as a percentage of sales increased to 29.03% in the 13 weeks ended October 26, 2024 compared to 28.52% in the 13 weeks ended October 28, 2023 due primarily to increased patronage dividends and rebates received from Wakefern (.35%), decreased warehouse assessment charges from Wakefern (.20%), increased departmental gross margin percentages (.14%) and lower LIFO charges (.06%) partially offset by an unfavorable change in product mix (.20%) and higher promotional spending (.04%).

Operating and administrative expense as a percentage of sales increased to 24.66% in the 13 weeks ended October 26, 2024 compared to 24.29% in the 13 weeks ended October 28, 2023. The increase in Operating and administrative expenses is due primarily to increased employee costs (.27%), increased external fees associated with digital sales growth (.22%) and higher utility costs (.11%) partially offset by operating leverage on fixed occupancy costs (.16%) and lower supply spending (.05%). Employee costs increased due primarily to minimum wage and demand driven pay rate increases and higher fringe benefit costs, including self-insured medical plans and multi-employer union health and welfare plan benefits.

Depreciation and amortization expense decreased slightly in the 13 weeks ended October 26, 2024 compared the 13 weeks ended October 28, 2023 due primarily to the timing of capital expenditures.

Interest expense decreased in the 13 weeks ended October 26, 2024 compared to the 13 weeks ended October 28, 2023 due primarily to lower average outstanding debt balances.

Interest income decreased in the 13 weeks ended October 26, 2024 compared to the 13 weeks ended October 28, 2023 due primarily to lesser amounts invested in demand deposits at Wakefern.

The Company’s effective income tax rate was 31.2% in the 13 weeks ended October 26, 2024 compared to 31.5% in the 13 weeks ended October 28, 2023.

Village Super Market operates a chain of 34 supermarkets in New Jersey, New York, Maryland and Pennsylvania under the ShopRite and Fairway banners and three Gourmet Garage specialty markets in New York City.

Forward Looking Statements

All statements, other than statements of historical fact, included in this Press Release are or may be considered forward-looking statements within the meaning of federal securities law. The Company cautions the reader that there is no assurance that actual results or business conditions will not differ materially from future results, whether expressed, suggested or implied by such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof. The following are among the principal factors that could cause actual results to differ from the forward-looking statements: general economic conditions; competitive pressures from the Company’s operating environment; the ability of the Company to maintain and improve its sales and margins; the ability to attract and retain qualified associates; the availability of new store locations; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending patterns; the impact of changing energy prices; increased cost of goods sold, including increased costs from the Company’s principal supplier, Wakefern; disruptions or changes in Wakefern's operations; the results of litigation; the results of tax examinations; the results of union contract negotiations; competitive store openings and closings; the rate of return on pension assets; labor shortages; disruptions to supply chains; and other factors detailed herein and in the Company’s filings with the SEC.

Contact:	John Van Orden, CFO
	(973) 467-2200
	villageinvestorrelations@wakefern.com

VILLAGE SUPER MARKET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
	13 Weeks Ended				13 Weeks Ended
	October 26, 2024				October 28, 2023
Sales	$	557,697			$	536,354
Cost of sales		395,819				383,406
Gross profit		161,878				152,948
Operating and administrative expense		137,519				130,292
Depreciation and amortization		8,383				8,506
Operating income		15,976				14,150
Interest expense		(990	)			(1,064	)
Interest income		3,617				3,825
Income before income taxes		18,603				16,911
Income taxes		5,800				5,326
Net income	$	12,803			$	11,585
Net income per share:
Class A common stock:
Basic	$	0.96			$	0.87
Diluted	$	0.86			$	0.78
Class B common stock:
Basic	$	0.63			$	0.56
Diluted	$	0.63			$	0.56
Gross profit as a % of sales		29.03	%			28.52	%
Operating and administrative expense as a % of sales		24.66	%			24.29	%

FAQ

What was Village Super Market's (VLGEA) revenue in Q1 2025?

Village Super Market reported revenue of $557.7 million for Q1 2025, representing a 4.0% increase from $536.4 million in Q1 2024.

How much did VLGEA's same-store sales grow in Q1 2025?

VLGEA's same-store sales increased by 2.4% in Q1 2025, driven by digital sales growth, higher pharmacy sales, and growth in recently remodeled stores.

What was Village Super Market's net income for Q1 2025?

Village Super Market's net income was $12.8 million in Q1 2025, an 11% increase compared to the same quarter in the previous year.

How many stores does Village Super Market (VLGEA) operate as of Q1 2025?

Village Super Market operates 34 supermarkets under the ShopRite and Fairway banners across New Jersey, New York, Maryland, and Pennsylvania, plus three Gourmet Garage specialty markets in New York City.