Village Super Market Reports Strong Q2 Fiscal 2025 Results with 17% Increase in Net Income and Sales Growth of 4.2%

Village Super Market, Inc. reported increased sales and net income for the second quarter and year-to-date Fiscal 2025.

Quiver AI Summary

Village Super Market, Inc. reported strong financial results for the second quarter ending January 25, 2025, highlighting a net income of $16.9 million, a 17% increase from the previous year. Sales rose by 4.2% to $599.7 million, driven by a 2.3% increase in same-store sales, bolstered by growth in digital sales, remodeled stores, pharmacy revenues, and inflation in meat and dairy. For the year-to-date period, net income reached $29.7 million, an increase of 14%, with sales totaling $1.157 billion. The company experienced slight decreases in gross profit percentage and operating expenses relative to sales, attributed to various cost optimizations. Despite challenges in interest income due to lower rates, the effective tax rate improved slightly. Overall, Village Super Market continues to expand with initiatives such as the opening of a new replacement store in Old Bridge, NJ.

Potential Positives

• Net income for the second quarter increased by 17% compared to the prior year, reaching $16.9 million.
• Sales for the second quarter rose to $599.7 million, reflecting a 4.2% increase from the previous year.
• Same store digital sales grew by 9% in the second quarter, indicating strong performance in the digital segment.
• Operating and administrative expenses as a percentage of sales decreased to 23.22%, showcasing improved operational efficiency.

Potential Negatives

• Gross profit as a percentage of sales slightly decreased to 28.35% for the second quarter compared to 28.40% in the prior year, indicating potential challenges in maintaining profitability against rising costs.
• Interest income decreased due to lower interest rates on variable rate notes receivable, which could signify reduced liquidity or financial flexibility going forward.
• Increased operating expenses associated with digital sales growth and employee costs could impact future profit margins if they continue to rise.

FAQ

What were Village Super Market's net income results for Q2 2025?

Village Super Market reported a net income of $16.9 million for the second quarter of fiscal 2025, a 17% increase from the previous year.

How did sales performance change in the second quarter of fiscal 2025?

Sales increased by 4.2% to $599.7 million, with same store sales rising by 2.3% compared to the same quarter last year.

What contributed to the increase in same store digital sales?

Same store digital sales rose by 9%, driven by digital growth, remodeled stores, higher pharmacy sales, and inflation in meat and dairy.

What is the effective income tax rate reported by Village Super Market?

The effective income tax rate for the 13 weeks ended January 25, 2025, was 31.1%, down from 31.5% the previous year.

How many supermarkets does Village Super Market operate?

Village Super Market operates a chain of 34 supermarkets in New Jersey, New York, Maryland, and Pennsylvania under various banners.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$VLGEA Insider Trading Activity

$VLGEA insiders have traded $VLGEA stock on the open market 5 times in the past 6 months. Of those trades, 0 have been purchases and 5 have been sales.

Here’s a breakdown of recent trading of $VLGEA stock by insiders over the last 6 months:

• KEVIN BEGLEY has made 0 purchases and 5 sales selling 14,433 shares for an estimated $435,463.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$VLGEA Hedge Fund Activity

We have seen 43 institutional investors add shares of $VLGEA stock to their portfolio, and 41 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• AMERICAN CENTURY COMPANIES INC added 39,694 shares (+17.7%) to their portfolio in Q4 2024, for an estimated $1,265,841
• SEGALL BRYANT & HAMILL, LLC added 35,718 shares (+87.9%) to their portfolio in Q4 2024, for an estimated $1,139,047
• SIERRA SUMMIT ADVISORS LLC removed 26,748 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $852,993
• UBS GROUP AG added 25,776 shares (+543.7%) to their portfolio in Q4 2024, for an estimated $821,996
• RENAISSANCE TECHNOLOGIES LLC removed 22,200 shares (-4.0%) from their portfolio in Q4 2024, for an estimated $707,958
• SYSTEMATIC FINANCIAL MANAGEMENT LP added 22,081 shares (+5.0%) to their portfolio in Q4 2024, for an estimated $704,163
• JPMORGAN CHASE & CO added 16,531 shares (+231.2%) to their portfolio in Q4 2024, for an estimated $527,173

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.