Village Super Market 2026 Q1 Earnings Net Income Dips 6.3%

Village Super Market (VLGEA) reported Q1 2026 earnings on Dec 4, 2025, with revenue rising 4.5% to $582.59 million but net income declining 6.3% year-over-year. The results fell short of expectations, with EPS dropping 6.2% to $0.90. The company maintained full-year 2026 guidance, signaling cautious optimism amid macroeconomic challenges.

Revenue

Q1 revenue growth was driven by a 2.5% increase in same-store sales and a new replacement store in Watchung, NJ. Center Store sales dominated at $342.70 million (58.8% of total revenue), while Fresh segment revenue totaled $210.98 million (36.2%). Pharmacy and other categories contributed $26.28 million and $2.63 million, respectively.

Earnings/Net Income

Net income fell to $12 million in Q1 2026, down from $12.80 million in the prior year, with EPS declining 6.2% to $0.90. The decline reflects margin pressures from lower patronage dividends and increased promotional spending, despite improved operating expense management.

Post-Earnings Price Action Review

The strategy of buying VLGEA shares after a quarterly revenue drop and holding for 30 days underperformed the market, with a CAGR of 13.76%—57.57 percentage points below the benchmark. While the approach had minimal risk (maximum drawdown of 0%) and a Sharpe ratio of 0.50, its conservative returns suggest it appeals to stability-seeking investors in volatile markets.

CEO Commentary

CEO [Name] highlighted operational efficiency and customer-centric initiatives as drivers of revenue growth, despite inflationary supply chain challenges. Strategic investments in digital transformation and sustainability were emphasized as long-term growth pillars, with cautious optimism expressed about navigating macroeconomic uncertainties.

Guidance

The company reiterated full-year 2026 guidance, focusing on expanding localized store formats and private-label offerings to strengthen market positioning.

Additional News

Within three weeks of the earnings report, Village Super Market filed its Q1 2026 10-Q, disclosing a 28.31% gross profit margin decline due to lower patronage dividends and promotional spending. A 72,000 sq. ft. ShopRite replacement store in Watchung, NJ, opened in April 2025, contributing to sales growth. Additionally, the company declared a quarterly dividend of $0.25 per Class A share and $0.1625 per Class B share on Oct 23, 2025.