Village Super Market, Inc. Reports Results for the Fourth Quarter Ended July 27, 2024
Rhea-AI Summary
Village Super Market, Inc. (NSD-VLGEA) reported strong results for the fourth quarter ended July 27, 2024. Sales increased 4.4% to $578.2 million, with same-store sales up 2.7%. The company achieved net income of $15.4 million and adjusted net income of $16.9 million, a 10% increase from the previous year. Digital sales showed impressive growth, rising 12% on a same-store basis.
For the full fiscal year 2024, Village Super Market reported sales of $2.24 billion, a 3.2% increase, with same-store sales up 2.3%. The company's net income reached $50.5 million, with adjusted net income of $52.6 million, representing a 7% increase from the prior year. Gross profit margins improved, while operating expenses increased due to labor costs and digital sales growth.
Positive
- Sales increased 4.4% to $578.2 million in Q4, with same-store sales up 2.7%
- Adjusted net income grew 10% to $16.9 million in Q4 compared to the previous year
- Same-store digital sales increased 12% in both Q4 and fiscal year 2024
- Fiscal year 2024 sales rose 3.2% to $2.24 billion, with same-store sales up 2.3%
- Gross profit margin improved to 29.34% in Q4, up from 29.08% in the previous year
- Full-year adjusted net income increased 7% to $52.6 million
Negative
- Operating and administrative expenses as a percentage of sales increased to 24.20% in Q4, up from 23.92% in the previous year
- Higher labor costs and fringe benefits due to minimum wage increases and union health plan costs
- Closure of a Gourmet Garage location on November 1, 2023
- Impairment charges for long-lived assets at the automated micro-fulfillment center closed in September 2024
News Market Reaction – VLGEA
In the trading session that priced this news, VLGEA gained 6.38%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SPRINGFIELD, N.J., Oct. 08, 2024 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the fourth quarter ended July 27, 2024.
Fourth Quarter Highlights
- Sales increased
4.4% and same store sales increased2.7% - Same store digital sales increased
12% - Net income of
$15.4 million - Adjusted net income of
$16.9 million , an increase of10% compared to adjusted net income of$15.3 million in the fourth quarter of the prior year
Fiscal 2024 Highlights
- Sales increased
3.2% and same store sales increased2.3% - Same store digital sales increased
12% - Net income of
$50.5 million - Adjusted net income of
$52.6 million , an increase of7% compared to adjusted net income of$48.9 million in the prior year-to-date period
Fourth Quarter of Fiscal 2024 Results
Sales were
Gross profit as a percentage of sales increased to
Operating and administrative expense as a percentage of sales increased to
Depreciation and amortization expense decreased slightly in the 13 weeks ended July 27, 2024 compared to the 13 weeks ended July 29, 2023 due primarily to the timing of capital expenditures.
Impairment of assets in the 13 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 13 weeks ended July 27, 2024 compared to the 13 weeks ended July 29, 2023 due primarily to lower average outstanding debt balances.
Interest income in the 13 weeks ended July 27, 2024 was flat compared to the 13 weeks ended July 29, 2023.
The Company’s effective income tax rate was
Fiscal 2024 Results
Sales were
Gross profit as a percentage of sales increased to
Operating and administrative expense as a percentage of sales increased to
Depreciation and amortization expense decreased in fiscal 2024 compared to fiscal 2023 due primarily to the timing of capital expenditures.
Impairment of assets in fiscal 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 fiscal 2024 compared to fiscal 2023 due primarily to lower average outstanding debt balances.
Interest income increased in fiscal 2024 compared to fiscal 2023 due primarily to higher interest rates and larger amounts invested in variable rate notes receivable from Wakefern and demand deposits invested at Wakefern.
The Company’s effective income tax rate was
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 and Non-GAAP Measures
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.
| 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 | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||||||
| July 27, 2024 | July 29, 2023 | July 27, 2024 | July 29, 2023 | ||||||||||||||||
| Sales | $ | 578,237 | $ | 553,806 | $ | 2,236,566 | $ | 2,166,654 | |||||||||||
| Cost of sales | 408,584 | 392,743 | 1,594,591 | 1,550,204 | |||||||||||||||
| Gross profit | 169,653 | 161,063 | 641,975 | 616,450 | |||||||||||||||
| Operating and administrative expense | 139,930 | 132,450 | 544,348 | 516,902 | |||||||||||||||
| Depreciation and amortization | 8,341 | 8,405 | 33,449 | 34,002 | |||||||||||||||
| Impairment of assets | 2,125 | — | 2,125 | — | |||||||||||||||
| Operating income | 19,257 | 20,208 | 62,053 | 65,546 | |||||||||||||||
| Interest expense | (1,010 | ) | (1,083 | ) | (4,135 | ) | (4,220 | ) | |||||||||||
| Interest income | 3,597 | 3,601 | 14,799 | 11,399 | |||||||||||||||
| Income before income taxes | 21,844 | 22,726 | 72,717 | 72,725 | |||||||||||||||
| Income taxes | 6,413 | 7,430 | 22,255 | 23,009 | |||||||||||||||
| Net income | $ | 15,431 | $ | 15,296 | $ | 50,462 | $ | 49,716 | |||||||||||
| Net income per share: | |||||||||||||||||||
| Class A common stock: | |||||||||||||||||||
| Basic | $ | 1.16 | $ | 1.15 | $ | 3.78 | $ | 3.78 | |||||||||||
| Diluted | $ | 1.04 | $ | 1.03 | $ | 3.40 | $ | 3.38 | |||||||||||
| Class B common stock: | |||||||||||||||||||
| Basic | $ | 0.75 | $ | 0.74 | $ | 2.46 | $ | 2.45 | |||||||||||
| Diluted | $ | 0.75 | $ | 0.74 | $ | 2.46 | $ | 2.45 | |||||||||||
| Gross profit as a % of sales | 29.34 | % | 29.08 | % | 28.70 | % | 28.45 | % | |||||||||||
| Operating and administrative expense as a % of sales | 24.20 | % | 23.92 | % | 24.34 | % | 23.86 | % | |||||||||||
VILLAGE SUPER MARKET, INC.
RECONCILIATION OF NON-GAAP MEASURE
(In thousands) (Unaudited)
The following tables reconciles Net income to Adjusted net income and Operating and administrative expenses to Adjusted operating and administrative expenses:
| 13 Weeks Ended | 52 Weeks Ended | ||||||||||||||||||
| July 27, 2024 | July 29, 2023 | July 27, 2024 | July 29, 2023 | ||||||||||||||||
| Net Income | $ | 15,431 | $ | 15,296 | $ | 50,462 | $ | 49,716 | |||||||||||
| Adjustments to Operating Expenses: | |||||||||||||||||||
| Store pre-opening costs (1) | $ | — | $ | — | $ | 907 | $ | — | |||||||||||
| Impairment of assets (2) | $ | 2,125 | $ | — | $ | 2,125 | $ | — | |||||||||||
| Litigation settlement gain (3) | — | — | — | (1,200 | ) | ||||||||||||||
| Adjustments to Income Taxes: | |||||||||||||||||||
| Tax impact of adjustments to operating expenses | (659 | ) | — | (940 | ) | 372 | |||||||||||||
| Adjusted net income | $ | 16,897 | $ | 15,296 | $ | 52,554 | $ | 48,888 | |||||||||||
| Operating and administrative expenses | $ | 139,930 | $ | 132,450 | $ | 544,348 | $ | 516,902 | |||||||||||
| Adjustments to operating and administrative expenses | — | — | (907 | ) | 1,200 | ||||||||||||||
| Adjusted operating and administrative expenses | 139,930 | 132,450 | 543,441 | 518,102 | |||||||||||||||
| Adjusted operating and administrative expenses as a % of sales | 24.20 | % | 23.92 | % | 24.30 | % | 23.91 | % | |||||||||||
(1) Fiscal 2024 pre-opening costs are associated with opening of the Old Bridge, NJ ShopRite replacement store opened on March 17, 2024.
(2) Fiscal 2024 includes non-cash impairment charges for long-lived assets due to the closure of the automated micro-fulfillment center in south NJ.
(3) Fiscal 2023 litigation settlement gains are related to claims associated with the Fairway acquisition and liabilities associated thereto.
