Village Super Market Reports 6.9% Sales Growth for 13 Weeks Ended January 24, 2026

Village Super Market, Inc. reported a notable increase in financial performance for the 13 and 26 weeks ended January 24, 2026, with sales reaching $640.96 million and $1.22 billion, respectively. This represents a 6.9% increase for the quarter and a 5.7% increase for the half-year compared to the same periods in the previous fiscal year. The growth was attributed to a 4.8% increase in same-store sales, bolstered by the opening of a new replacement store in Watchung, New Jersey, and a surge in digital sales, particularly during the last week of the quarter due to Winter Storm Fern. However, the company noted that these gains were partially offset by cannibalization effects from the new store and increased competition.

The company's gross profit for the 13 weeks was $179.88 million, yielding a gross margin of 28.06%, a slight decrease from 28.35% in the prior year. For the 26-week period, gross profit was $344.83 million, with a margin of 28.18%, down from 28.68%. The decline in gross margin was primarily due to lower patronage dividends from Wakefern, unfavorable product mix changes, and increased promotional spending. Operating income for the quarter was $23.46 million, up from $22.15 million, while net income increased to $17.87 million from $16.90 million year-over-year.

In terms of operational developments, Village Super Market operates 34 supermarkets across New Jersey, New York, Maryland, and Pennsylvania. The company has been actively remodeling stores and expanding its footprint, with plans for a new store in East Orange, New Jersey, expected to open in fiscal 2026. The company’s workforce remains stable, with no significant changes in employee headcount reported. The company continues to leverage its relationship with Wakefern, which provides essential support services and purchasing advantages.

Looking ahead, Village Super Market anticipates same-store sales growth between 1.0% and 3.0% for fiscal 2026. The company has revised its capital expenditure budget to approximately $65 million, reflecting delays in certain projects. The Board intends to maintain quarterly dividends at the current rate of $0.25 per Class A share and $0.1625 per Class B share. The company believes its cash reserves, operating cash flow, and available credit will be sufficient to meet its liquidity needs in the near term, despite the competitive pressures and economic uncertainties facing the supermarket industry.