Village Super Market, Inc. Reports Results for the First Quarter Ended October 25, 2025

Rhea-AI Summary

Village Super Market (NSD:VLGEA) reported results for the first quarter ended October 25, 2025: sales $582.6M (up 4.5% YoY) and net income $12.0M (down 6% YoY). Adjusted net income was $12.5M (down 2% YoY). Same store sales rose 2.5% and same store digital sales increased 14%. Gross profit margin decreased to 28.31% from 29.03% due mainly to lower patronage dividends, product mix and higher promotions. Operating and administrative expenses improved to 24.28% of sales (adjusted 24.15%). Interest expense declined and depreciation rose due to capital spending. Effective tax rate was 31.4%.

Positive

• Same store digital sales increased 14%
• Sales of $582.6M increased 4.5% year-over-year

Negative

• None.

News Market Reaction – VLGEA

+0.87%

1 alert

+0.87% News Effect

On the day this news was published, VLGEA gained 0.87%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 Sales: $582.6M Q1 Net Income: $12.0M Adjusted Net Income: $12.5M +5 more

8 metrics

Q1 2026 Sales $582.6M 13 weeks ended October 25, 2025; up 4.5% YoY

Q1 Net Income $12.0M Down 6% vs prior-year quarter ($12.8M)

Adjusted Net Income $12.5M 13 weeks ended October 25, 2025; down 2% YoY

Same Store Sales 2.5% Same store sales growth in Q1 2026

Same Store Digital Sales 14% Same store digital sales growth in Q1 2026

Gross Margin 28.31% Gross profit as % of sales in Q1 2026

Op & Admin Expense 24.28% Operating & admin expense as % of sales; adjusted 24.15%

Effective Tax Rate 31.4% Q1 2026 effective income tax rate

Market Reality Check

Price: $39.15 Vol: Volume 50,446 is 1.14x th...

normal vol

$39.15 Last Close

Volume Volume 50,446 is 1.14x the 20-day average of 44,166, indicating slightly elevated interest around the earnings release. normal

Technical Price at $37.75 is above the 200-day MA $35.63 and 5.97% below the 52-week high of $40.145, reflecting a position closer to the upper end of its 1-year range.

Peers on Argus

Peers showed mixed moves: DNUT -5.54%, DDL -1.44%, NGVC +4.85%, IMKTA -0.01%, WM...

Peers showed mixed moves: DNUT -5.54%, DDL -1.44%, NGVC +4.85%, IMKTA -0.01%, WMK +0.75%. VLGEA’s modest pre-news gain of 0.92% appears more stock-specific than sector-driven.

Historical Context

4 past events · Latest: Dec 02 (Neutral)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Dec 02	Q1 2026 earnings	Neutral	+0.9%	Sales up 4.5% but net income down 6% and margin compression.
Oct 07	Q4 2025 earnings	Neutral	-11.9%	Moderate sales growth with mixed profit metrics and lower margins.
Sep 19	Quarterly dividend	Positive	-2.6%	Declared cash dividends on Class A and Class B shares.
Jun 20	Quarterly dividend	Positive	+3.4%	Announced regular quarterly dividend with set payment schedule.

Pattern Detected

Recent news shows a balance of aligned and divergent reactions: one prior earnings report and one dividend saw negative moves despite neutral-to-positive fundamentals, while other dividend and earnings events had modest positive alignment.

Recent Company History

Over the past six months, Village Super Market reported several steady quarters and maintained regular dividends. Earnings releases on Mar 4, 2025, Jun 3, 2025, and Oct 7, 2025 highlighted mid-single-digit sales growth, ongoing digital expansion, and generally stable margins, though recent gross margin pressure emerged. Dividend declarations on Jun 20 and Sep 19, 2025 reaffirmed cash returns. Today’s Q1 FY2026 results, with $582.6M sales and $12.0M net income, continue this theme of moderate growth with some margin headwinds.

Market Pulse Summary

This announcement highlights Q1 FY2026 results with $582.6M in sales, up 4.5%, and net income of $12...

Analysis

This announcement highlights Q1 FY2026 results with $582.6M in sales, up 4.5%, and net income of $12.0M, down 6% year over year. Same-store sales grew 2.5%, including a robust 14% increase in same-store digital sales, while gross margin eased to 28.31%. Operating expenses improved as a percentage of sales. Investors may track future quarters for margin stabilization, digital growth sustainability, and capital spending impacts.

Key Terms

non-GAAP financial measures, pension settlement charge, forward-looking statements

3 terms

non-GAAP financial measures financial

"We provide non-GAAP measures, including Adjusted net income..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

pension settlement charge financial

"Pension settlement charge (2) | 338..."

A pension settlement charge is a fee that a company pays when it transfers or removes a pension plan obligation from its balance sheet, often to reduce future pension liabilities. It’s similar to paying a penalty to settle a long-term debt early, helping the company manage its financial health. For investors, understanding this charge is important because it can impact a company's reported profits and overall stability.

forward-looking statements regulatory

"may be considered forward-looking statements within the meaning..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

SPRINGFIELD, N.J., Dec. 02, 2025 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the first quarter ended October 25, 2025.

First Quarter Highlights

• Net income of $12.0 million, a decrease of 6% compared to $12.8 million in the first quarter of the prior year
• Adjusted net income of $12.5 million, a decrease of 2% compared to adjusted net income of $12.8 million in the first quarter of the prior year
• Sales increased 4.5% and same store sales increased 2.5%
• Same store digital sales increased 14%

First Quarter of Fiscal 2026 Results

Sales were $582.6 million in the 13 weeks ended October 25, 2025 compared to $557.7 million in the 13 weeks ended October 26, 2024. Sales increased due to an increase in same store sales of 2.5% and the opening of the Watchung, NJ replacement store on April 9, 2025. Same store sales increased due primarily to digital sales growth, continued growth in recently replaced or remodeled stores and higher fresh and pharmacy sales. These increases were partially offset by cannibalization of existing stores from the Watchung replacement store opening and recent competitive store openings. 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 decreased to 28.31% in the 13 weeks ended October 25, 2025 compared to 29.03% in the 13 weeks ended October 26, 2024 due primarily to lower patronage dividends and other rebates received from Wakefern (.28%), decreased departmental gross margin percentages (.27%), an unfavorable change in product mix (.10%) and increased promotional spending (.06%).

Operating and administrative expense as a percentage of sales decreased to 24.28% in the 13 weeks ended October 25, 2025 compared to 24.66% in the 13 weeks ended October 26, 2024. Adjusted operating and administrative expenses decreased to 24.15% in the 13 weeks ended October 25, 2025 compared to 24.66% in the 13 weeks ended October 26, 2024. The decrease in Adjusted operating and administrative expenses is due primarily to lower employee costs (.34%), short-term rental income (.24%), reduced supply spending (.05%) and lower advertising costs (.05%) partially offset by external service, technology, legal and other professional fees (.12%) and increased repair and maintenance costs (.09%).

Depreciation and amortization expense increased in the 13 weeks ended October 25, 2025 compared to the 13 weeks ended October 26, 2024 due primarily to capital expenditures.

Interest expense decreased in the 13 weeks ended October 25, 2025 compared to the 13 weeks ended October 26, 2024 due primarily to lower average outstanding debt balances.

Interest income decreased in the 13 weeks ended October 25, 2025 compared to the 13 weeks ended October 26, 2024 due primarily to lower interest rates on variable rate notes receivable from Wakefern and demand deposits invested at Wakefern.

The Company’s effective income tax rate was 31.4% in the 13 weeks ended October 25, 2025 compared to 31.2% in the 13 weeks ended October 26, 2024.

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.

We provide non-GAAP measures, including Adjusted net income and Adjusted operating and administrative expenses as management believes these supplemental measures are useful to investors and analysts.    These non-GAAP financial measures should not be reviewed in isolation or considered as a substitute for our financial results as reported in accordance with GAAP, nor as an alternative to net income, operating and administrative expense or any other GAAP measure of performance. Adjusted net income and Adjusted operating and administrative expense are useful to investors because they provide supplemental measures that exclude the financial impact of certain items that affect period-to-period comparability.   Management and the Board of Directors use these measures as they provide greater transparency in assessing ongoing operating performance on a period-to-period basis.   Other companies may have different definitions of Non-GAAP Measures and provide for different adjustments, and comparability to the Company's results of operations may be impacted by such differences. The Company's presentation of Non-GAAP Measures should not be construed as an implication that its future results will be unaffected by unusual or non-recurring items.

VILLAGE SUPER MARKET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
	13 Weeks Ended
	October 25, 2025				October 26, 2024
Sales	$	582,593			$	557,697
Cost of sales		417,642				395,819
Gross profit		164,951				161,878
Operating and administrative expense		141,445				137,519
Depreciation and amortization		8,405				8,383
Operating income		15,101				15,976
Interest expense		(862	)			(990	)
Interest income		3,268				3,617
Income before income taxes		17,507				18,603
Income taxes		5,505				5,800
Net income	$	12,002			$	12,803
Net income per share:
Class A common stock:
Basic	$	0.90			$	0.96
Diluted		0.81				0.86
Class B common stock:
Basic	$	0.59			$	0.63
Diluted		0.59				0.63
Gross profit as a % of sales		28.31	%			29.03	%
Operating and administrative expense as a % of sales		24.28	%			24.66	%

VILLAGE SUPER MARKET, INC. RECONCILIATION OF NON-GAAP MEASURE (In thousands) (Unaudited)
The following tables reconcile Net income to Adjusted net income and Operating and administrative expenses to Adjusted operating and administrative expenses:
	13 Weeks Ended
	October 25, 2025				October 26, 2024
Net Income	$	12,002			$	12,803
Adjustments to Operating and Administrative Expenses:
Store pre-opening costs (1)	$	383			$	—
Pension settlement charge (2)		338				—
Adjustments to Income Taxes:
Tax impact of special items	$	(227	)		$	—
Adjusted net income	$	12,496			$	12,803
Operating and administrative expenses	$	141,445			$	137,519
Adjustments to operating and administrative expenses		(721	)			—
Adjusted operating and administrative expenses	$	140,724			$	137,519
Adjusted operating and administrative expenses as a % of sales		24.15	%			24.66	%

(1) Fiscal 2026 pre-opening costs are associated with opening of the East Orange, NJ ShopRite replacement store that is expected to open in the second half of fiscal 2026.

(2) Fiscal 2026 pension settlement charges relate to the termination of a company-sponsored plan.

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

FAQ

What were Village Super Market (VLGEA) sales and net income for Q1 2026?

Q1 sales were $582.6M and net income was $12.0M for the 13 weeks ended October 25, 2025.

How much did Village Super Market (VLGEA) same store sales change in Q1 2026?

Same store sales increased 2.5% in the first quarter of fiscal 2026.

What drove Village Super Market (VLGEA) gross margin decline in Q1 2026?

Gross margin fell to 28.31% mainly due to lower patronage dividends, an unfavorable product mix and increased promotional spending.

How did operating expenses as a percentage of sales change for VLGEA in Q1 2026?

Operating and administrative expense decreased to 24.28% of sales and adjusted O&A was 24.15%.

Did Village Super Market (VLGEA) report growth in digital sales in Q1 2026?

Yes; same store digital sales grew by 14% in the quarter.

What was Village Super Market (VLGEA)’s effective tax rate in Q1 2026?

The effective income tax rate was 31.4% for the 13 weeks ended October 25, 2025.