Village Super Market, Inc. Reports Results for the Fourth Quarter Ended July 26, 2025

Rhea-AI Summary

Village Super Market (NSD-VLGEA) reported results for the fourth quarter ended July 26, 2025. Q4 net income was $15.5M (+1% YoY) and adjusted net income was $15.6M (−8% YoY). Q4 sales were $599.7M (+3.7%) with same-store sales +1.6% and same-store digital sales +11%. Year-to-date FY2025 net income was $56.4M (+12% YoY) and adjusted net income was $56.9M (+8% YoY); YTD sales were $2.321B (+3.8%) with same-store sales +2.1% and digital +10%.

Gross profit margin declined to 28.17% in Q4 from 29.34% a year earlier, while operating and administrative expense as a % of sales improved to 23.11% in Q4. The company opened a 72,000 sq. ft. ShopRite replacement in Watchung, NJ on April 9, 2025 and recorded $1.5M of impairment charges in Q4.

Positive

• Q4 sales increased 3.7% to $599.7M
• Same-store digital sales +11% in Q4
• YTD net income +12% to $56.4M
• Operating and administrative expense down to 23.11% of sales in Q4

Negative

• Adjusted net income declined 8% in Q4 to $15.6M
• Gross profit margin fell 1.17 percentage points to 28.17% in Q4
• Recorded $1.5M impairment charge in Q4
• Effective income tax rate rose to 31.4% in Q4

Insights

Retail Financial Analyst

Village delivered modest top-line growth and stronger year-to-date profitability despite quarterly margin pressure.

Sales rose to $599.7 million in the quarter and $2.321 billion year‑to‑date, with same store sales up 1.6% for the quarter and 2.1 YTD; net income was $15.5 million for the quarter and $56.4 million YTD, a 12 YTD increase, showing the company converted sales growth to higher full‑year profits.

Gross margin contracted to 28.17 in the quarter from 29.34 a year earlier, driven by departmental margin declines, fewer Wakefern rebates, higher LIFO charges, and promotional spending, while operating expense leverage helped reduce O&A to 23.11. These facts point to margin pressure offset by cost control and sales mix shifts rather than one-off improvement.

Watch near term trends in same‑store sales momentum, digital sales growth (same store digital sales rose 11 in the quarter), and gross margin recovery over the next one to two quarters; also monitor incremental impact and cannibalization from the new Watchung replacement store opened on April 9, 2025, impairment items for specialty locations, and Wakefern rebate dynamics as drivers of future operating performance.

SPRINGFIELD, N.J., Oct. 07, 2025 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the fourth quarter ended July 26, 2025.

Fourth Quarter Highlights

• Net income of $15.5 million, an increase of 1% compared to $15.4 million in the fourth quarter of the prior year

• Adjusted net income of $15.6 million, a decrease of 8% compared to adjusted net income of $16.9 million in the fourth quarter of the prior year

• Sales increased 3.7% and same store sales increased 1.6%

• Same store digital sales increased 11%

Year-To-Date Fiscal 2025 Highlights

• Net income of $56.4 million, an increase of 12% compared to $50.5 million in the prior year-to-date period

• Adjusted net income of $56.9 million, an increase of 8% compared to adjusted net income of $52.6 million in the prior year-to-date period

• Sales increased 3.8% and same store sales increased 2.1%

• Same store digital sales increased 10%

• Grand opening of a 72,000 sq. ft. ShopRite replacement store in Watchung, NJ
  

Fourth Quarter of Fiscal 2025 Results

Sales were $599.7 million in the 13 weeks ended July 26, 2025 compared to $578.2 million in the 13 weeks ended July 27, 2024. Sales increased due to an increase in same store sales of 1.6% 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, higher pharmacy sales and inflation in the meat and dairy departments. 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 28.17% in the 13 weeks ended July 26, 2025 compared to 29.34% in the 13 weeks ended July 27, 2024 due primarily to decreased departmental gross margin percentages (.44%), lower patronage dividends and other rebates received from Wakefern (.42%), higher LIFO charges (.14%), an unfavorable change in product mix (.12%) and higher promotional spending (.10%) partially offset by decreased warehouse assessment charges from Wakefern (.05%). Departmental gross margin percentages decreased due primarily to price investments and cost inflation.

Operating and administrative expense as a percentage of sales decreased to 23.11% in the 13 weeks ended July 26, 2025 compared to 24.20% in the 13 weeks ended July 27, 2024. Adjusted operating and administrative expenses decreased to 23.34% in the 13 weeks ended July 26, 2025 compared to 24.20% in the 13 weeks ended July 27, 2024. The decrease in Adjusted operating and administrative expenses is due primarily to lower employee costs (.68%), sales leverage on occupancy and facility costs (.13%), reduced advertising spending (.10%), decreased external fees associated with digital sales (.06%), lower security spending (.04%) and reduced facility insurance costs (.04%) partially offset by increased legal and consulting fees (.12%) and increased utilities rates (.06%).

Impairment of assets in the 13 weeks ended July 26, 2025 of $1.5 million includes non-cash impairment charges on the long-lived assets of one Gourmet Garage store and assets held for sale. Impairment of assets in the 13 weeks ended July 27, 2024 of $2.1 million includes non-cash charges for long-lived assets at the automated micro-fulfillment center which was closed in September 2024.

Depreciation and amortization expense increased in the 13 weeks ended July 26, 2025 compared to the 13 weeks ended July 27, 2024 due primarily to capital expenditures.

Interest expense decreased in the 13 weeks ended July 26, 2025 compared to the 13 weeks ended July 27, 2024 due primarily to lower average outstanding debt balances.

Interest income decreased in the 13 weeks ended July 26, 2025 compared to the 13 weeks ended July 27, 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 July 26, 2025 compared to 29.4% in the 13 weeks ended July 27, 2024.

Year-To-Date Fiscal 2025 Results

Sales were $2.321 billion in the 52 weeks ended July 26, 2025 compared to $2.237 billion in the 52 weeks ended July 27, 2024. Sales increased due to an increase in same store sales of 2.1%, the opening of the Watchung, NJ replacement store on April 9, 2025 and the opening of the Old Bridge, NJ replacement store on March 17, 2024. Same store sales increased due primarily to digital sales growth, continued growth in recently remodeled stores, higher pharmacy sales and inflation in the meat and dairy departments. These increases were partially offset by cannibalization of existing stores from the Watchung replacement store opening and recent competitive store openings.

Gross profit as a percentage of sales decreased to 28.57% in the 52 weeks ended July 26, 2025 compared to 28.70% in the 52 weeks ended July 27, 2024 due primarily to an unfavorable change in product mix (.15%), higher promotional spending (.08%) and decreased departmental gross margin percentages (.06%) partially offset by higher patronage dividends and rebates received from Wakefern (.07%), decreased warehouse assessment charges from Wakefern (.09%).

Operating and administrative expense as a percentage of sales decreased to 23.92% in the 52 weeks ended July 26, 2025 compared to 24.34% in the 52 weeks ended July 27, 2024. Adjusted operating and administrative expense as a percentage of sales decreased to 23.95% in the 52 weeks ended July 26, 2025 compared to 24.30% in the 52 weeks ended July 27, 2024. The decrease in Adjusted operating and administrative expenses is due primarily to lower employee costs (.16%), sales leverage on occupancy and facility costs (.13%), lower facility insurance costs (.06%) and reduced supply spending (.06%) partially offset by higher utility rates (.07%).

Depreciation and amortization expense increased in the 52 weeks ended July 26, 2025 compared to the 52 weeks ended July 27, 2024 due primarily to capital expenditures.

Impairment of assets in the 52 weeks ended July 26, 2025 includes non-cash impairment charges on the long-lived assets of one Gourmet Garage store and assets held for sale. Impairment of assets in the 52 weeks ended July 27, 2024 includes non-cash charges for long-lived assets at the automated micro-fulfillment center which was closed in September 2024.

Interest expense decreased in the 52 weeks ended July 26, 2025 compared to the 52 weeks ended July 27, 2024 due primarily to lower average outstanding debt balances.

Interest income decreased in the 52 weeks ended July 26, 2025 compared to the 52 weeks ended July 27, 2024 due primarily to lower interest rates earned on variable rate notes receivable from Wakefern and demand deposits invested at Wakefern.

The effective income tax rate was 31.1% in the 52 weeks ended July 26, 2025 compared to 30.6% in the 52 weeks ended July 27, 2024. The increase in the effective income tax rate is due to the prior year including a favorable deferred tax asset revaluation to reflect changes in state tax rates.

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				13 Weeks Ended				52 Weeks Ended				52 Weeks Ended
	July 26, 2025				July 27, 2024				July 26, 2025				July 27, 2024
Sales	$	599,674			$	578,237			$	2,320,690			$	2,236,566
Cost of sales		430,773				408,584				1,657,724				1,594,591
Gross profit		168,901				169,653				662,966				641,975
Operating and administrative expense		138,581				139,930				555,038				544,348
Depreciation and amortization		8,640				8,341				34,398				33,449
Impairment of assets		1,462				2,125				1,462				2,125
Operating income		20,218				19,257				72,068				62,053
Interest expense		(879	)			(1,010	)			(3,751	)			(4,135	)
Interest income		3,274				3,597				13,502				14,799
Income before income taxes		22,613				21,844				81,819				72,717
Income taxes		7,093				6,413				25,439				22,255
Net income	$	15,520			$	15,431			$	56,380			$	50,462
Net income per share:
Class A common stock:
Basic	$	1.17			$	1.16			$	4.24			$	3.78
Diluted		1.05				1.04				3.81				3.40
Class B common stock:
Basic	$	0.76			$	0.75			$	2.75			$	2.46
Diluted		0.76				0.75				2.75				2.46
Gross profit as a % of sales		28.17	%			29.34	%			28.57	%			28.70	%
Operating and administrative expense as a % of sales		23.11	%			24.20	%			23.92	%			24.34	%

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								52 Weeks Ended
	July 26, 2025				July 27, 2024				July 26, 2025				July 27, 2024
Net income	$	15,520			$	15,431			$	56,380			$	50,462
Adjustments to Operating and Administrative Expenses:
Store pre-opening costs (1)	$	—			$	—			$	684			$	907
Pension settlement gain (2)		(874	)			—				(874	)			—
Rent concession (3)		(517	)			—				(517	)			—
Adjustments to Impairment of Assets:
Impairment of assets (4)	$	1,462			$	2,125			$	1,462			$	2,125
Adjustments to Income Taxes:
Tax impact of special items	$	(22	)		$	(659	)		$	(234	)		$	(940	)
Adjusted net income	$	15,569			$	16,897			$	56,901			$	52,554
Operating and administrative expenses	$	138,581			$	139,930			$	555,038			$	544,348
Adjustments to operating and administrative expenses		1,391				—				707				(907	)
Adjusted operating and administrative expenses	$	139,972			$	139,930			$	555,745			$	543,441
Adjusted operating and administrative expenses as a % of sales		23.34	%			24.20	%			23.95	%			24.30	%

(1) Fiscal 2025 pre-opening costs are associated with opening of the Watchung, NJ ShopRite replacement store that opened on April 9, 2025 and fiscal 2024 pre-opening costs are associated with the opening of the Old Bridge, NJ ShopRite replacement store that opened on March 17, 2024.

(2) Fiscal 2025 includes a pension settlement gain related to lump sum payments made under an unfunded, non-qualified company sponsored defined benefit plan.

(3) Fiscal 2025 includes income related to rent concessions received on one store location to compensate for disruption in operations during redevelopment of the retail center.

(4) Fiscal 2025 includes non-cash impairment charges on the long-lived assets of one Gourmet Garage store and assets held for sale. Fiscal 2024 includes non-cash impairment charges for long-lived assets due to the closure of the automated micro-fulfillment center in south NJ.

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

FAQ

What were Village Super Market (VLGEA) Q4 2025 sales and same-store sales?

Q4 sales were $599.7M (up 3.7% YoY) and same-store sales increased 1.6%.

How did VLGEA's Q4 2025 net income and adjusted net income compare year-over-year?

Q4 net income was $15.5M (+1% YoY); adjusted net income was $15.6M (−8% YoY).

What is Village Super Market's year-to-date FY2025 performance for VLGEA?

YTD FY2025 sales were $2.321B (+3.8%); net income $56.4M (+12%); adjusted net income $56.9M (+8%).

Why did gross margin for VLGEA decline in Q4 2025?

Gross margin fell to 28.17% primarily due to lower departmental margins, reduced patronage dividends/rebates, higher LIFO charges and increased promotional spending.

Did VLGEA open any new stores during FY2025 that affected results?

Yes. A 72,000 sq. ft. ShopRite replacement in Watchung, NJ opened on April 9, 2025 and contributed to sales growth and some cannibalization effects.

How did VLGEA's operating efficiency change in Q4 2025?

Operating and administrative expense improved to 23.11% of sales in Q4, reflecting lower employee costs and reduced advertising spend.

What one-time items affected VLGEA's adjusted results in Q4 2025?

Q4 included a $1.5M non-cash impairment on a Gourmet Garage store and other assets, which was adjusted in non-GAAP metrics.