Village Super Market, Inc. Reports Results for the Second Quarter Ended January 24, 2026

Rhea-AI Summary

Village Super Market (NSD-VLGEA) reported second quarter fiscal 2026 results for the 13 weeks ended January 24, 2026. Net income was $17.9 million, up 6% year-over-year, and sales were $641.0 million, up 6.9% driven by a 4.8% same store sales increase.

Year-to-date sales were $1.224 billion and adjusted net income was $30.1 million. Company cited digital sales growth (+15% same store digital), Watchung replacement store opening, and Winter Storm Fern effects; gross margin and Wakefern patronage variations pressured results.

Positive

• Net income +6% in Q2 to $17.9M
• Sales +6.9% in Q2 to $641.0M
• Same store sales +4.8% in Q2
• Same store digital sales +15%
• Adjusted net income +1% YTD to $30.1M

Negative

• Gross profit margin down 29 bps to 28.06% in Q2
• YTD gross profit margin down 50 bps to 28.18%
• Lower Wakefern patronage rebates reduced margin (.42% Q2)
• Cannibalization from Watchung replacement store opening

Key Figures

Q2 2026 sales: $640.959M Q2 2026 net income: $17.872M Q2 same store sales: 4.8% +5 more

8 metrics

Q2 2026 sales $640.959M 13 weeks ended January 24, 2026

Q2 2026 net income $17.872M Up from $16.896M in prior-year quarter

Q2 same store sales 4.8% Same store sales growth in Q2 2026

Q2 digital same store 15% Same store digital sales growth in Q2 2026

YTD 2026 sales $1.223552B 26 weeks ended January 24, 2026

Q2 gross margin 28.06% Down from 28.35% in prior-year Q2

Q2 op & admin ratio 23.07% Improved from 23.22% in prior-year Q2

YTD adjusted net income $30.106M 26 weeks ended January 24, 2026 vs $29.697M prior YTD

Market Reality Check

Price: $40.49 Vol: Volume 42,137 vs 20-day a...

normal vol

$40.49 Last Close

Volume Volume 42,137 vs 20-day average 46,895 – slightly below typical activity before this release. normal

Technical Price $39.10 is trading above the 200-day MA at $36.13 and sits about 2.6% below the 52-week high of $40.145.

Peers on Argus

Peers showed mixed moves: IMKTA +1.99%, DDL +1.07%, NGVC +0.34% versus DNUT -3.3...

Peers showed mixed moves: IMKTA +1.99%, DDL +1.07%, NGVC +0.34% versus DNUT -3.31% and WMK -1.84%. With VLGEA nearly flat at -0.13% and no peers in the momentum scanner, trading appeared stock-specific rather than a broad grocery-sector reaction.

Previous Earnings Reports

5 past events · Latest: Dec 02 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 02	Quarterly earnings	Neutral	+0.9%	Sales growth with modest net income decline and lower gross margins.
Oct 07	Quarterly earnings	Negative	-11.9%	Q4 adjusted earnings down and margin compression despite sales growth.
Jun 03	Quarterly earnings	Positive	+1.1%	Strong Q3 profit growth, higher margins and solid digital expansion.
Mar 04	Quarterly earnings	Positive	+1.2%	Q2 2025 net income and sales growth with healthy same-store gains.
Dec 03	Quarterly earnings	Positive	-1.3%	Strong Q1 2025 sales and profit growth but shares slipped post-report.

Pattern Detected

Recent earnings releases typically saw modest single-day moves (average -2.01%), with most reactions aligning directionally with the earnings tone and one notable divergence on strong results.

Recent Company History

Over the past five earnings reports, Village Super Market has consistently grown sales and digital channels, while margins fluctuated. Events on Mar 4, 2025 and Jun 3, 2025 highlighted strong net income growth and expanding same-store and digital sales. Subsequent quarters (Oct 7, 2025 and Dec 2, 2025) showed more mixed profit trends with margin pressure. The current Q2 FY2026 report continues this pattern: solid top-line and digital growth, aided by Winter Storm Fern, but with slightly lower gross margin percentages.

Historical Comparison

-2.0% avg move · Past five earnings reports averaged a -2.01% move, with most tied to solid sales growth but recurrin...

earnings

-2.0%

Average Historical Move earnings

Past five earnings reports averaged a -2.01% move, with most tied to solid sales growth but recurring margin pressure—similar to this Q2 FY2026 update.

Earnings over the last year showed steady sales and digital growth, aided by remodels and new stores, while gross margins trended slightly lower and cost controls improved operating expense ratios.

Market Pulse Summary

This announcement shows steady expansion: Q2 sales of $640.959M, net income of $17.872M, same store ...

Analysis

This announcement shows steady expansion: Q2 sales of $640.959M, net income of $17.872M, same store sales up 4.8% and digital up 15%. Year-to-date, sales reached $1.223552B and adjusted net income $30.106M. Investors may track how much growth was pulled forward by Winter Storm Fern and watch gross margin at 28.06% plus operating expense ratios to gauge whether cost discipline offsets competitive and promotional pressures.

Key Terms

same store sales, gross profit, operating income, depreciation and amortization, +4 more

8 terms

same store sales financial

"Sales increased 6.9% and same store sales increased 4.8%"

Same store sales measure the change in revenue generated by stores that have been open for at least a year, comparing current sales to past periods. It helps investors see how well a business is growing from its existing locations, without the influence of new store openings or closures. This metric provides a clearer picture of ongoing performance and customer demand.

gross profit financial

"Gross profit as a percentage of sales decreased to 28.06%"

Gross profit is the amount a business keeps from sales after subtracting the direct costs to make or buy the products or services sold — like the money left from a lemonade stand after paying for lemons, sugar and cups. Investors watch gross profit to judge how well a company’s core operations and pricing cover those direct costs, revealing its basic profitability and whether margins are improving or shrinking over time.

operating income financial

"Operating income | | 23,463 | | 22,150 |"

Operating income is the profit a company earns from its regular business activities after subtracting the costs directly related to running the business, such as wages, rent, and supplies. It shows how well the core operations are performing, ignoring income or expenses from non-regular activities like investments or one-time events. Investors use it to assess the company's efficiency and profitability from its main work.

depreciation and amortization financial

"Depreciation and amortization expense decreased in the 13 weeks ended"

Depreciation and amortization are accounting methods that spread the cost of long-term assets over the years they help generate revenue: depreciation applies to physical items like equipment, while amortization applies to intangible items like patents or software. Investors watch these charges because they reduce reported profit without using cash right away, so comparing them to cash flow helps reveal whether earnings come from real business performance or just accounting allocation — like spreading the price of a car or a license over many years.

effective income tax rate financial

"The Company's effective income tax rate was 30.7% in the 13 weeks"

The effective income tax rate is the share of a company’s pre-tax profit that it actually pays in income taxes, calculated by dividing total tax expense by pre-tax income. For investors, it shows how much tax reduces a company’s earnings — like knowing the difference between a car’s sticker price and what you actually pay after fees and discounts — and helps compare profitability and cash available for growth or dividends.

non-GAAP financial

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

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

pension settlement charge financial

"Pension settlement charge (1) | | 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

"are or 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., March 03, 2026 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the second quarter ended January 24, 2026.

Second Quarter of Fiscal 2026 Highlights

• Net income of $17.9 million, an increase of 6% compared to $16.9 million in the second quarter of the prior year
• Sales increased 6.9% and same store sales increased 4.8%
• Same store digital sales increased 15%

Year-To-Date Fiscal 2026 Highlights

• Net income of $29.9 million, an increase of 1% compared to $29.7 million in the prior year-to-date period
• Adjusted net income of $30.1 million, an increase of 1% compared to adjusted net income of $29.7 million in the prior year-to-date period
• Sales increased 5.7% and same store sales increased 3.7%
• Same store digital sales increased 15%

Second Quarter of Fiscal 2026 Results

Sales were $641.0 million in the 13 weeks ended January 24, 2026 compared to $599.7 million in the 13 weeks ended January 25, 2025. Sales increased due to an increase in same store sales of 4.8% and the opening of the Watchung, NJ replacement store on April 9, 2025. Same store sales increased due primarily to significantly higher sales in the last week of the second quarter of fiscal 2026 as customers prepared for Winter Storm Fern, as well as 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. Excluding the estimated impact of Winter Storm Fern, same store sales increased 1.4% in the 13 weeks ended January 24, 2026 compared to the 13 weeks ended January 25, 2025. 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 28.06% in the 13 weeks ended January 24, 2026 compared to 28.35% in the 13 weeks ended January 25, 2025 due primarily to lower patronage dividends and other rebates received from Wakefern (.42%), an unfavorable change in product mix (.07%) and increased promotional spending (.03%), partially offset by increased departmental gross margin percentages (.21%) and decreased warehouse assessment charges from Wakefern (.02%). Gross profit in both the 13 weeks ended January 24, 2026 and January 25, 2025 were favorably impacted by receipt of patronage dividends from Wakefern greater than estimated amounts accrued in both the second quarter of fiscal 2026 (.32%) and 2025 (.62%).

Operating and administrative expense as a percentage of sales decreased to 23.07% in the 13 weeks ended January 24, 2026 compared to 23.22% in the 13 weeks ended January 25, 2025. The decrease in Operating and administrative expenses is due primarily to lower employee costs (.40%), lower advertising costs (.15%) and lower occupancy costs (.08%), partially offset by increased external service, technology, legal and other professional fees (.15%), increased weather-related maintenance costs (.13%), higher facility insurance costs (.11%) and increased store pre-opening costs (.06%). Employee and occupancy costs as a percentage of sales decreased due primarily to operating leverage as a result of significantly higher sales in the last week of the second quarter as a result of Winter Storm Fern.

Depreciation and amortization expense decreased in the 13 weeks ended January 24, 2026 compared to the comparative prior year fiscal period due primarily to timing of capital expenditures.

Interest expense decreased in the 13 weeks ended January 24, 2026 compared to the comparative prior year fiscal period due primarily to lower average outstanding debt balances.

Interest income decreased in the 13 weeks ended January 24, 2026 compared to the comparative prior year fiscal period 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 30.7% in the 13 weeks ended January 24, 2026 compared to 31.1% in the 13 weeks ended January 25, 2025.

Year-To-Date Fiscal 2026 Results

Sales were $1.224 billion in the 26 weeks ended January 24, 2026 compared to $1.157 billion in the 26 weeks ended January 25, 2025. Sales increased due to an increase in same store sales of 3.7% and the opening of the Watchung, NJ replacement store on April 9, 2025. Same store sales increased due primarily to significantly higher sales in the last week of the second quarter of fiscal 2026 as customers prepared for Winter Storm Fern, as well as 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. Excluding the estimated impact of Winter Storm Fern, same store sales increased 2.0% in the 26 weeks ended January 24, 2026 compared to the 26 weeks ended January 25, 2025.

Gross profit as a percentage of sales decreased to 28.18% in the 26 weeks ended January 24, 2026 compared to 28.68% in the 26 weeks ended January 25, 2025 due primarily to lower patronage dividends and other rebates received from Wakefern (.36%), an unfavorable change in product mix (.08%) and increased promotional spending (.05%). Gross profit in both the 26 weeks ended January 24, 2026 and January 25, 2025 were favorably impacted by receipt of patronage dividends from Wakefern greater than estimated amounts accrued in both the second quarter of fiscal 2026 (.17%) and 2025 (.32%).

Operating and administrative expense as a percentage of sales decreased to 23.65% in the 26 weeks ended January 24, 2026 compared to 23.91% in the 26 weeks ended January 25, 2025. Adjusted operating and administrative expenses decreased to 23.62% in the 26 weeks ended January 24, 2026 compared to 23.91% in the 26 weeks ended January 25, 2025. The decrease in Adjusted operating and administrative expenses is due primarily to lower employee costs (.37%), lower short-term rental income (.10%), lower advertising costs (.10%) and lower occupancy costs (.09%), partially offset by increased external service, technology, legal and other professional fees (.13%), increased repair and weather-related maintenance costs (.13%), increased store pre-opening costs (.09%) and higher facility insurance costs (.05%). Employee and occupancy costs as a percentage of sales decreased due primarily to operating leverage as a result of significantly higher sales in the last week of the second quarter as a result of Winter Storm Fern.

Depreciation and amortization expense decreased in the 26 weeks ended January 24, 2026 compared to the comparative prior year fiscal period due primarily to timing of capital expenditures.

Interest expense decreased in the 26 weeks ended January 24, 2026 compared to the comparative prior year fiscal period due primarily to lower average outstanding debt balances.

Interest income decreased in the 26 weeks ended January 24, 2026 compared to the comparative prior year fiscal period 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 31.0% in the 26 weeks ended January 24, 2026 compared to 31.1% in the 26 weeks ended January 25, 2025.

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. We believe 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								26 Weeks Ended
	January 24, 2026				January 25, 2025				January 24, 2026				January 25, 2025
Sales	$	640,959			$	599,651			$	1,223,552			$	1,157,347
Cost of sales		461,081				429,645				878,723				825,463
Gross profit		179,878				170,006				344,829				331,884
Operating and administrative expense		147,886				139,254				289,332				276,774
Depreciation and amortization expense		8,529				8,602				16,934				16,985
Operating income		23,463				22,150				38,563				38,125
Interest expense		847				982				1,709				1,972
Interest income		(3,176	)			(3,356	)			(6,444	)			(6,972	)
Income before income taxes		25,792				24,524				43,298				43,125
Income taxes		7,920				7,628				13,425				13,428
Net income	$	17,872			$	16,896			$	29,873			$	29,697
Net income per share:
Class A common stock:
Basic	$	1.34			$	1.27			$	2.25			$	2.23
Diluted		1.21				1.14				2.02				2.01
Class B common stock:
Basic	$	0.87			$	0.82			$	1.46			$	1.45
Diluted		0.87				0.82				1.46				1.45
Gross profit as a % of sales		28.06	%			28.35	%			28.18	%			28.68	%
Operating and administrative expense as a % of sales		23.07	%			23.22	%			23.65	%			23.91	%

VILLAGE SUPER MARKET, INC. RECONCILIATION OF NON-GAAP MEASURE (In thousands) (Unaudited)
The following table reconciles Net income to Adjusted net income and Operating and administrative expenses to Adjusted operating and administrative expenses:
	26 Weeks Ended
	January 24, 2026				January 25, 2025
Net Income	$	29,873			$	29,697
Adjustments to Operating and Administrative Expenses:
Pension settlement charge (1)		338				—
Adjustments to Income Taxes:
Tax impact of special items		(105	)			—
Adjusted net income	$	30,106			$	29,697
Operating and administrative expenses	$	289,332			$	276,774
Adjustments to operating and administrative expenses		(338	)			—
Adjusted operating and administrative expenses	$	288,994			$	276,774
Adjusted operating and administrative expenses as a % of sales		23.62	%			23.91	%

(1) 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) Q2 fiscal 2026 net income and sales?

Net income for Q2 fiscal 2026 was $17.9 million and sales were $641.0 million. According to the company, sales rose 6.9% year-over-year, driven by 4.8% same store growth and contributions from a replacement store opening.

How did same store and digital sales perform for VLGEA in Q2 2026?

Same store sales increased 4.8% and same store digital sales rose 15% in the quarter. According to the company, strength came from digital growth, remodeled stores, higher fresh and pharmacy sales, and Winter Storm Fern shopping activity.

What caused the gross margin decline at Village Super Market in Q2 2026?

Gross profit as a percentage of sales fell to 28.06% in Q2 due mainly to lower Wakefern patronage and an unfavorable product mix. According to the company, increased promotions also modestly reduced margin.

Did Village Super Market report any notable cost or expense trends in Q2 2026?

Operating and administrative expense as a percent of sales decreased slightly to 23.07% in Q2. According to the company, lower employee, advertising and occupancy costs offset higher external service, maintenance and insurance costs.

How did the Watchung store opening affect Village Super Market's results in fiscal 2026?

The Watchung replacement store contributed to sales growth but caused some cannibalization of nearby stores. According to the company, the net sales effect included both new-store gains and localized store displacement.