Village Super Market 2026 Q1 Earnings Net Income Dips 6.3% Despite 4.5% Revenue Growth

Village Super Market (VLGEA) reported mixed results for fiscal 2026 Q1, with revenue rising 4.5% to $582.59 million but net income declining 6.3% to $12 million. The company cited margin pressures and operational challenges, though it did not provide specific guidance for future quarters.

Revenue

Village Super Market’s total revenue increased by 4.5% to $582.59 million in 2026 Q1, driven by a 2.5% rise in same-store sales and the opening of a replacement store in Watchung, NJ. Center Store sales led with $342.70 million, followed by Fresh at $210.98 million, while Pharmacy and Other segments contributed $26.28 million and $2.63 million respectively.

Earnings/Net Income

The company’s EPS declined 6.2% to $0.90 in 2026 Q1 from $0.96 in 2025 Q1, while net income fell to $12 million, down 6.3% year-over-year. Despite higher revenue, the 6.2% drop in EPS highlights margin pressures and operational challenges.

Price Action

The stock price edged down 2.64% in the latest trading day but gained 1.16% over the past week and 9.97% month-to-date.

Post-Earnings Price Action Review

The strategy of buying shares after a quarterly revenue drop and holding for 30 days delivered moderate returns but underperformed the market. With a CAGR of 13.76%, it trailed the benchmark by 57.57 percentage points. The strategy’s maximum drawdown of 0% and Sharpe ratio of 0.50 indicate minimal risk but conservative returns, suitable for stability-seeking investors in volatile markets.

CEO Commentary

The CEO of Village Super Market emphasized strategic initiatives to address margin pressures, including cost optimization and digital sales expansion.

Guidance

The company did not provide specific guidance for future quarters.

Additional News

1. Dividend Announcements: Village Super Market declared quarterly dividends of $0.25 per Class A share and $0.1625 per Class B share on December 2, 2025, payable January 23, 2026.

2. Store Expansion: A 72,000 sq. ft. ShopRite replacement store opened in Watchung, NJ, contributing to sales growth.

3. Digital Sales Growth: Same-store digital sales rose 14%, driven by online ordering and delivery services.

Consolidated Statements of Operations (Unaudited)

13 Weeks Ended October 25, 2025

• Sales: $582,593

• Cost of Sales: $417,642

• Gross Profit: $164,951 (28.31% of sales)

• Operating Income: $15,101

• Net Income: $12,002

Reconciliation of Non-GAAP Measures (Unaudited)

• Adjusted Net Income: $12,496 (vs. $12,803 prior year)

• Adjusted Operating Expenses: 24.15% of sales (vs. 24.66% prior year)

Outlook

The company remains focused on cost management, digital innovation, and store optimization to navigate competitive pressures and inflationary challenges.