Village Super Market, Inc. Reports Results for the Second Quarter Ended January 25, 2025

Rhea-AI Summary

Village Super Market (VLGEA) reported strong financial results for Q2 2025, with net income reaching $16.9 million, up 17% year-over-year. Sales increased 4.2% to $599.7 million, with same-store sales growing 2.3%. Digital sales showed impressive growth of 9%.

Year-to-date performance was equally robust, with net income of $29.7 million, up 14% from the prior year. Total sales reached $1.157 billion, a 4.1% increase, while same-store sales grew 2.4%. The company's growth was driven by digital sales expansion, performance of remodeled stores, higher pharmacy sales, and inflation in meat and dairy departments.

Gross profit margin slightly decreased to 28.35% in Q2, while operating expenses improved to 23.22% of sales. The company operates 34 supermarkets under ShopRite and Fairway banners across four states, plus three Gourmet Garage specialty markets in New York City.

Positive

• Net income up 17% to $16.9M in Q2
• Sales increased 4.2% to $599.7M
• Digital sales grew 9% year-over-year
• Operating expenses decreased to 23.22% of sales
• YTD net income up 14% to $29.7M

Negative

• Gross profit margin declined to 28.35% from 28.40%
• Higher promotional spending (0.16% impact)
• Decreased patronage dividends from Wakefern
• Lower interest income due to reduced rates

Insights

Financial Analyst

Village Super Market has delivered an impressive Q2 2025 performance with $16.9 million in net income, representing a 17% year-over-year increase. Total sales reached $599.7 million, up 4.2%, while same-store sales grew 2.3%.

The company's digital transformation continues to drive growth, with same-store digital sales increasing 9%, significantly outpacing overall same-store performance. This digital acceleration provides a competitive advantage in the evolving grocery landscape.

While gross profit margin contracted slightly to 28.35% from 28.40% due to increased promotional activity, the company demonstrated excellent operational discipline by reducing operating and administrative expenses to 23.22% of sales from 23.71%. This efficiency stems from multiple areas: lower facility insurance costs (0.12%), reduced legal fees (0.13%), and better leverage of fixed costs (0.07%).

The balance sheet shows improving health with decreased interest expense from lower debt balances. Year-to-date performance remains strong with net income of $29.7 million, up 14%, and total sales growth of 4.1%.

The company's strategic investments in store renovation and digital capabilities appear to be delivering returns, as evidenced by continued growth in recently remodeled locations and the contribution from the replacement store in Old Bridge, NJ.

SPRINGFIELD, N.J., March 04, 2025 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the second quarter ended January 25, 2025.

Second Quarter Highlights

• Net income of $16.9 million, an increase of 17% compared to the second quarter of the prior year
• Sales increased 4.2% and same store sales increased 2.3%
• Same store digital sales increased 9%
  

Year-To-Date Fiscal 2025 Highlights

• Net income of $29.7 million, an increase of 14% compared to $26.1 million in the prior year-to-date period
• Sales increased 4.1% and same store sales increased 2.4%
• Same store digital sales increased 8%
  

Second Quarter of Fiscal 2025 Results

Sales were $599.7 million in the 13 weeks ended January 25, 2025 compared to $575.6 million in the 13 weeks ended January 27, 2024. Sales increased due to an increase in same store sales of 2.3% 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. 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 28.35% in the 13 weeks ended January 25, 2025 compared to 28.40% in the 13 weeks ended January 27, 2024 due primarily to higher promotional spending (.16%), an unfavorable change in product mix (.14%) and decreased patronage dividends and rebates received from Wakefern (.02%) partially offset by increased departmental gross margin percentages (.17%), decreased warehouse assessment charges from Wakefern (.06%) and lower LIFO charges (.04%). Gross profit in both the 13 weeks ended January 25, 2025 and the 13 weeks ended January 27, 2024 was favorably impacted by receipt of patronage dividends from Wakefern greater than estimated amounts accrued in both the second quarter of fiscal 2025 (.62%) and 2024 (.58%).

Operating and administrative expense as a percentage of sales decreased to 23.22% in the 13 weeks ended January 25, 2025 compared to 23.71% in the 13 weeks ended January 27, 2024 due primarily to lower facility insurance costs (.12%), decreased legal and consulting fees (.13%), sales leverage on occupancy and facility costs (.07%), reduced supply (.07%), employee costs (.06%) and security spends (.05%).

Depreciation and amortization expense increased slightly in the 13 weeks ended January 25, 2025 compared the 13 weeks ended January 27, 2024 due primarily to the timing of capital expenditures.

Interest expense decreased in the 13 weeks ended January 25, 2025 compared to the 13 weeks ended January 27, 2024 due primarily to lower average outstanding debt balances.

Interest income decreased in the 13 weeks ended January 25, 2025 compared to the 13 weeks ended January 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 31.1% in the 13 weeks ended January 25, 2025 compared to 31.5% in the 13 weeks ended January 27, 2024.

Year-To-Date Fiscal 2025 Results

Sales were $1.157 billion in the 26 weeks ended January 25, 2025 compared to $1.112 billion in the 26 weeks ended January 27, 2024. 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. 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.

Gross profit as a percentage of sales increased to 28.68% in the 26 weeks ended January 25, 2025 compared to 28.45% in the 26 weeks ended January 27, 2024 due primarily to increased departmental gross margin percentages (.17%), higher patronage dividends and rebates received from Wakefern (.16%), decreased warehouse assessment charges from Wakefern (.13%) and lower LIFO charges (.05%) partially offset by an unfavorable change in product mix (.18%) and higher promotional spending (.10%). Gross profit in both the 26 weeks ended January 25, 2025 and the 26 weeks ended January 27, 2024 was favorably impacted by receipt of patronage dividends from Wakefern greater than estimated amounts accrued in both the second quarter of fiscal 2025 (.32%) and 2024 (.30%).

Operating and administrative expense as a percentage of sales decreased to 23.91% in the 26 weeks ended January 25, 2025 compared to 23.99% in the 26 weeks ended January 27, 2024 due primarily to sales leverage on occupancy and facility costs (.09%), lower facility insurance costs (.07%), reduced supply spending (.06%), lower legal and consulting fees (.05%) and decreased security spends (.04%) partially offset by increased external fees associated with digital sales growth (.11%) and employee costs (.10%).

Depreciation and amortization expense decreased slightly in the 26 weeks ended January 25, 2025 compared to the 26 weeks ended January 27, 2024 due primarily to the timing of capital expenditures.

Interest expense decreased in the 26 weeks ended January 25, 2025 compared to the 26 weeks ended January 27, 2024 due primarily to lower average outstanding debt balances.

Interest income decreased in the 26 weeks ended January 25, 2025 compared to the 26 weeks ended January 27, 2024 due primarily to lesser amounts invested in demand deposits at Wakefern and 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 26 weeks ended January 25, 2025 compared to 31.5% in the 26 weeks ended January 27, 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.

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				26 Weeks Ended				26 Weeks Ended
	January 25, 2025				January 27, 2024				January 25, 2025				January 27, 2024
Sales	$	599,651			$	575,579			$	1,157,347			$	1,111,933
Cost of sales		429,645				412,137				825,463				795,542
Gross profit		170,006				163,442				331,884				316,391
Operating and administrative expense		139,254				136,477				276,774				266,769
Depreciation and amortization		8,602				8,523				16,985				17,029
Operating income		22,150				18,442				38,125				32,593
Interest expense		(982	)			(1,046	)			(1,972	)			(2,110	)
Interest income		3,356				3,743				6,972				7,568
Income before income taxes		24,524				21,139				43,125				38,051
Income taxes		7,628				6,659				13,428				11,985
Net income	$	16,896			$	14,480			$	29,697			$	26,066
Net income per share:
Class A common stock:
Basic	$	1.27			$	1.09			$	2.23			$	1.95
Diluted	$	1.14			$	0.97			$	2.01			$	1.75
Class B common stock:
Basic	$	0.82			$	0.71			$	1.45			$	1.27
Diluted	$	0.82			$	0.71			$	1.45			$	1.27
Gross profit as a % of sales		28.35	%			28.40	%			28.68	%			28.45	%
Operating and administrative expense as a % of sales		23.22	%			23.71	%			23.91	%			23.99	%

FAQ

What was VLGEA's net income growth in Q2 2025?

Village Super Market's net income grew 17% to $16.9 million in Q2 2025 compared to Q2 2024.

How much did VLGEA's digital sales increase in Q2 2025?

Same-store digital sales increased 9% in Q2 2025.

What was Village Super Market's total revenue for Q2 2025?

Total sales were $599.7 million, representing a 4.2% increase from Q2 2024.

What factors drove VLGEA's same-store sales growth in Q2 2025?

Same-store sales grew 2.3% due to digital sales growth, performance of remodeled stores, higher pharmacy sales, and inflation in meat and dairy departments.

How many stores does VLGEA currently operate?

VLGEA operates 34 supermarkets across NJ, NY, MD, and PA, plus 3 Gourmet Garage specialty markets in NYC.