Village Super Market, Inc. Reports Results For The Third Quarter Ended April 26, 2025

Rhea-AI Summary

Village Super Market (VLGEA) reported strong Q3 FY2025 results with net income of $11.2M, up 24% YoY. Sales reached $563.7M, a 3.2% increase, with same-store sales up 1.9%. Digital sales showed robust growth of 10%. The company opened a new 72,000 sq. ft. ShopRite replacement store in Watchung, NJ. Year-to-date performance was equally impressive with net income of $40.9M, up 17%. Gross profit margin improved to 28.77% in Q3, while operating expenses decreased to 24.78%. The company operates 34 supermarkets under ShopRite and Fairway banners across four states, plus three Gourmet Garage specialty markets in NYC. Growth was driven by digital sales expansion, remodeled stores performance, higher pharmacy sales, and inflation in meat and dairy departments.

Positive

• Net income increased 24% to $11.2M in Q3 2025
• Same store digital sales grew 10% both quarterly and year-to-date
• Gross profit margin improved to 28.77% from 28.54% YoY
• Operating expenses decreased to 24.78% from 25.19% YoY
• Successfully opened new replacement store in Watchung, NJ

Negative

• Interest income decreased due to lower interest rates on variable rate notes
• Higher utility rates increased operating costs by 0.07%
• Unfavorable change in product mix impacted gross margins by 0.13%
• Higher promotional spending affected margins

Insights

Financial Analyst

Village Super Market delivers 24% Q3 profit growth with improving margins, driven by digital sales and operational efficiencies.

Village Super Market's Q3 results reveal impressive financial performance with net income up 24% to $11.2 million compared to $9.0 million in the prior year. The company achieved a 3.2% increase in sales to $563.7 million, with same-store sales growing by 1.9%.

The performance was primarily driven by digital sales growth of 10%, continued momentum in recently remodeled stores, higher pharmacy sales, and inflation in meat and dairy departments. The company also benefited from the opening of a new 72,000 sq. ft. ShopRite replacement store in Watchung, NJ.

Gross profit margin improved to 28.77% from 28.54%, largely due to higher patronage dividends and rebates from Wakefern (0.39%) and decreased warehouse assessment charges (0.07%). This was partially offset by decreased departmental margins (0.13%) and an unfavorable product mix shift (0.13%).

Operating and administrative expenses decreased to 24.78% of sales from 25.19%, with the adjusted figure dropping to 24.66% from 25.03%. This efficiency gain came from reduced employee costs (0.24%), lower advertising expenses (0.09%), decreased security spending (0.09%), and reduced facility insurance costs (0.06%), partially offset by increased utility rates (0.07%).

Year-to-date results are equally strong, with net income up 17% to $40.9 million and sales increasing 3.8% to $1.72 billion. The company continues to benefit from its digital expansion strategy, with year-to-date digital sales growing 10%.

Village Super Market's debt reduction strategy is also bearing fruit, evidenced by decreased interest expense due to lower outstanding debt balances. This disciplined approach to capital allocation, combined with operational efficiencies and digital growth, positions the company well for sustainable profitability in the competitive grocery sector.

SPRINGFIELD, N.J., June 03, 2025 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the third quarter ended April 26, 2025.

Third Quarter Highlights

• Net income of $11.2 million, an increase of 24% compared to $9.0 million in the third quarter of the prior year
• Adjusted net income of $11.6 million, an increase of 21% compared to adjusted net income of $9.6 million in the third quarter of the prior year
• Sales increased 3.2% and same store sales increased 1.9%
• Same store digital sales increased 10%
• Grand opening of a 72,000 sq. ft. ShopRite replacement store in Watchung, NJ
  

Year-To-Date Fiscal 2025 Highlights

• Net income of $40.9 million, an increase of 17% compared to $35.0 million in the prior year-to-date period
• Adjusted net income of $41.3 million, an increase of 16% compared to adjusted net income of $35.7 million in the prior year-to-date period
• Sales increased 3.8% and same store sales increased 2.2%
• Same store digital sales increased 10%

Third Quarter of Fiscal 2025 Results

Sales were $563.7 million in the 13 weeks ended April 26, 2025 compared to $546.4 million in the 13 weeks ended April 27, 2024. Sales increased due to an increase in same store sales of 1.9%, 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.   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 increased to 28.77% in the 13 weeks ended April 26, 2025 compared to 28.54% in the 13 weeks ended April 27, 2024 due primarily to higher patronage dividends and other rebates received from Wakefern (.39%) decreased warehouse assessment charges from Wakefern (.07%) and lower LIFO charges (.04%) partially offset by decreased departmental gross margin percentages (.13%), an unfavorable change in product mix (.13%) and higher promotional spending (.01%).

Operating and administrative expense as a percentage of sales decreased to 24.78% in the 13 weeks ended April 26, 2025 compared to 25.19% in the 13 weeks ended April 27, 2024. Adjusted operating and administrative expenses decreased to 24.66% in the 13 weeks ended April 26, 2025 compared to 25.03% in the 13 weeks ended April 27, 2024. The decrease in Adjusted operating and administrative expenses is due primarily to lower employee costs (.24%), advertising expenses (.09%), security spending (.09%) and facility insurance costs (.06%) partially offset by increased utilities rates (.07%).

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

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

Interest income decreased in the 13 weeks ended April 26, 2025 compared to the 13 weeks ended April 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 30.6% in the 13 weeks ended April 26, 2025 compared to 30.1% in the 13 weeks ended April 27, 2024.

Year-To-Date Fiscal 2025 Results

Sales were $1.721 billion in the 39 weeks ended April 26, 2025 compared to $1.658 billion in the 39 weeks ended April 27, 2024. Sales increased due to an increase in same store sales of 2.2%, 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.

Gross profit as a percentage of sales increased to 28.71% in the 39 weeks ended April 26, 2025 compared to 28.48% in the 39 weeks ended April 27, 2024 due primarily to higher patronage dividends and rebates received from Wakefern (.24%), decreased warehouse assessment charges from Wakefern (.11%), increased departmental gross margin percentages (.07%) and lower LIFO charges (.05%) partially offset by an unfavorable change in product mix (.16%) and higher promotional spending (.07%).

Operating and administrative expense as a percentage of sales decreased to 24.20% in the 39 weeks ended April 26, 2025 compared to 24.39% in the 39 weeks ended April 27, 2024. Adjusted operating and administrative expense as a percentage of sales decreased to 24.16% in the 39 weeks ended April 26, 2025 compared to 24.33% in the 39 weeks ended April 27, 2024. The decrease in Adjusted operating and administrative expenses is due primarily to sales leverage on occupancy and facility costs (.10%), lower facility insurance costs (.06%), reduced supply spending (.06%), lower legal and consulting fees (.05%) and decreased security spending (.05%) partially offset by higher utility rates (.08%) and increased external fees associated with digital sales growth (.06%).

Depreciation and amortization expense increased in the 39 weeks ended April 26, 2025 compared to the 39 weeks ended April 27, 2024 due primarily to capital expenditures.

Interest expense decreased in the 39 weeks ended April 26, 2025 compared to the 39 weeks ended April 27, 2024 due primarily to lower average outstanding debt balances.

Interest income decreased in the 39 weeks ended April 26, 2025 compared to the 39 weeks ended April 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 31.0% in the 39 weeks ended April 26, 2025 compared to 31.1% in the 39 weeks ended April 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.

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				39 Weeks Ended				39 Weeks Ended
	April 26, 2025				April 27, 2024				April 26, 2025				April 27, 2024
Sales	$	563,669			$	546,396			$	1,721,016			$	1,658,329
Cost of sales		401,488				390,464				1,226,951				1,186,007
Gross profit		162,181				155,932				494,065				472,322
Operating and administrative expense		139,683				137,650				416,457				404,419
Depreciation and amortization		8,773				8,078				25,758				25,108
Operating income		13,725				10,204				51,850				42,795
Interest expense		(899	)			(1,015	)			(2,871	)			(3,125	)
Interest income		3,256				3,634				10,228				11,202
Income before income taxes		16,082				12,823				59,207				50,872
Income taxes		4,921				3,857				18,349				15,842
Net income	$	11,161			$	8,966			$	40,858			$	35,030
Net income per share:
Class A common stock:
Basic	$	0.84			$	0.67			$	3.07			$	2.63
Diluted	$	0.75			$	0.60			$	2.76			$	2.36
Class B common stock:
Basic	$	0.54			$	0.44			$	1.99			$	1.71
Diluted	$	0.54			$	0.44			$	1.99			$	1.71
Gross profit as a % of sales		28.77	%			28.54	%			28.71	%			28.48	%
Operating and administrative expense as a % of sales		24.78	%			25.19	%			24.20	%			24.39	%

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								39 Weeks Ended
	April 26, 2025				April 27, 2024				April 26, 2025				April 27, 2024
Net Income	$	11,161			$	8,966			$	40,858			$	35,030
Adjustments to Operating Expenses:
Store pre-opening costs (1)		684				907				684				907
Adjustments to Income Taxes:
Tax impact of adjustments to operating expenses		(212	)			(281	)			(212	)			(281	)
Adjusted net income	$	11,633			$	9,592			$	41,330			$	35,656
Operating and administrative expenses	$	139,683			$	137,650			$	416,457			$	404,419
Adjustments to operating and administrative expenses		(684	)			(907	)			(684	)			(907	)
Adjusted operating and administrative expenses		138,999				136,743				415,773				403,512
Adjusted operating and administrative expenses as a % of sales		24.66	%			25.03	%			24.16	%			24.33	%

(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.

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

FAQ

What was Village Super Market's (VLGEA) net income for Q3 2025?

Village Super Market reported a net income of $11.2 million for Q3 2025, representing a 24% increase from $9.0 million in the same quarter last year.

How much did VLGEA's same-store sales increase in Q3 2025?

Village Super Market's same-store sales increased by 1.9% in Q3 2025, driven by digital sales growth, remodeled stores performance, and higher pharmacy sales.

What was Village Super Market's total sales for Q3 2025?

Village Super Market's total sales for Q3 2025 were $563.7 million, a 3.2% increase compared to $546.4 million in Q3 2024.

How many stores does Village Super Market operate?

Village Super Market operates 34 supermarkets across New Jersey, New York, Maryland and Pennsylvania under the ShopRite and Fairway banners, plus three Gourmet Garage specialty markets in New York City.

What was VLGEA's digital sales growth in Q3 2025?

Village Super Market's same-store digital sales increased by 10% in Q3 2025 compared to the same period last year.