Village Super Market (VLGE.A) Q3 2024 earnings summary

Executive summary

• Sales increased 3.2% year-over-year to $546.4 million for the quarter, with same store sales up 2.3% and digital sales up 9%.

• Net income for the quarter was $9.0 million; adjusted net income was $9.6 million, down 6% from the prior year.

• An 83,000 sq. ft. ShopRite replacement store opened in Old Bridge, NJ, contributing to sales growth.

Financial highlights

• Quarterly sales: $546.4 million (up from $529.3 million year-over-year); year-to-date sales: $1.66 billion (up 2.8%).

• Gross profit margin for the quarter: 28.54% (down slightly from 28.57%); year-to-date: 28.48% (up from 28.23%).

• Operating and administrative expenses as a percentage of sales increased to 25.19% for the quarter (from 24.33%).

• Net income for the quarter: $8.97 million (down from $11.02 million); year-to-date: $35.03 million (up from $34.42 million).

• Adjusted net income for the quarter: $9.59 million (down 6%); year-to-date: $35.66 million (up 6%).

Outlook and guidance

• Same store sales growth expected to range from 2.0% to 2.5% for fiscal 2024.

• Capital expenditures budgeted at $70 million for fiscal 2024, including new and replacement stores and technology upgrades.

• Board intends to continue quarterly dividends at $0.25 per Class A and $0.1625 per Class B share.

• Effective tax rate for fiscal 2024 expected to be 31.0%–32.0%.