Village Super Market 2025 Q3 Earnings Strong Performance as Net Income Increases 24.5%

Generated by AI AgentAinvest Earnings Report Digest
Thursday, Jun 5, 2025 7:02 am ET2min read
Village Super Market (VLGEA) reported its fiscal 2025 Q3 earnings on Jun 04th, 2025. The company surpassed expectations with a notable increase in net income and earnings per share. Village Super Market's EPS rose by 25.4% to $0.84, beating forecasts, and net income increased to $11.16 million. The company's guidance for the upcoming quarter remains in line with previous estimates, projecting steady growth. Looking ahead, anticipates maintaining its revenue growth trajectory, highlighting a continued focus on operational efficiency and market expansion.

Revenue

The total revenue for Village Super Market in 2025 Q3 reached $563.67 million, marking a 3.2% increase from the previous year. The Center Store segment led with $335.75 million, while the Fresh category contributed $203.41 million. The Pharmacy division added $22.71 million, and Other revenues amounted to $1.79 million, culminating in total sales of $563.67 million.

Earnings/Net Income

Village Super Market's EPS experienced a significant rise of 25.4% to $0.84 in 2025 Q3, up from $0.67 in 2024 Q3, demonstrating continued earnings growth. The company's net income also showed a robust increase of 24.5%, reaching $11.16 million in 2025 Q3 from $8.97 million in the prior year. This performance sets a new record high for fiscal Q3 net income, the highest in over two decades. The EPS growth reflects strong financial health and operational success.

Price Action

The stock price of Village Super Market dropped 3.15% during the latest trading day, edged down 0.50% during the most recent full trading week, and climbed 3.17% month-to-date.

Post-Earnings Price Action Review

The strategy of acquiring Village Super Market (VLGEA) shares following a revenue increase on the earnings report release date and holding for 30 days has yielded a 37.01% return over the past three years. Despite this positive outcome, the strategy underperformed the benchmark by 1.41 percentage points, with a Sharpe ratio of 0.42 indicating a moderate risk-adjusted return. The maximum drawdown of -20.80% highlights the strategy's exposure to market downturns, emphasizing the importance of evaluating risk tolerance and market conditions. Investors are encouraged to weigh these factors carefully when considering this approach.

CEO Commentary

In the latest earnings call, President and CEO Edie Cohen highlighted Village Super Market's resilience amid a challenging retail landscape. She emphasized that the company achieved $563.67 million in revenue for Q3 2025, supported by strategic investments in technology and store enhancements. Ongoing efforts to optimize supply chain efficiencies and customer engagement were key growth drivers. However, Cohen acknowledged the pressures from inflation and competitive market dynamics, urging caution in the upcoming quarters. Overall, she expressed optimism about the company's ability to adapt and thrive in the evolving grocery sector.

Guidance

Looking ahead, Village Super Market anticipates a modest revenue growth trajectory, projecting total revenues to reach approximately $2.3 billion for the fiscal year. The company also guides for an EPS of $0.84 for the next fiscal quarter, emphasizing a continued focus on operational efficiency and cost management. Additionally, management plans to allocate resources toward further enhancing customer experience and expanding market presence, aiming to solidify its competitive positioning in the grocery sector.

Additional News

Village Super Market (VLGEA) recently announced its quarterly dividend declaration. The company will distribute $0.25 per Class A common share and $0.1625 per Class B common share, scheduled for payment on April 24, 2025, to shareholders on record as of April 3, 2025. Additionally, the company continues to operate 34 supermarkets under the ShopRite and Fairway brands across New Jersey, Maryland, New York, and eastern Pennsylvania, along with three specialty markets under the Gourmet Garage name in New York City. These dividends highlight the company's commitment to returning value to its shareholders while maintaining a strong operational presence in its markets.

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