SPRINGFIELD, NJ - Village Super Market, Inc. 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.

View the full report here.