Village Super Market, Inc. reported first‑quarter fiscal 2026 results for the 13‑week period ending October 25, 2025, showing sales of $582.6 million, a 4.2 % year‑over‑year increase driven by a 2.5 % rise in same‑store sales and a 14 % jump in digital sales. The company also highlighted the contribution of the Watchung, New Jersey replacement store, which opened in April and added $12 million in sales during the quarter.
Gross profit margin fell to 28.31 % from 29.03 % a year earlier, a compression largely attributable to lower patronage dividends and other rebates received from Wakefern, a decline in departmental gross margins, an unfavorable product mix shift, and higher promotional spending. Operating and administrative expenses as a percentage of sales decreased to 24.28 % from 24.66 % year‑over‑year, while adjusted operating expenses fell to 24.15 %. Net income declined 6 % to $12.0 million, and the effective income tax rate was 31.4 %.
Comparing to the preceding quarter, Village Super Market’s Q4 FY2025 sales were $568.4 million and net income was $12.8 million, indicating a modest sequential decline in revenue and a sharper drop in profitability. The year‑over‑year decline in net income reflects the margin compression and the impact of higher promotional costs that were not offset by the digital sales growth.
Segment analysis shows that digital sales grew 14 % driven by increased online grocery orders and same‑day delivery, while fresh produce and pharmacy sales contributed 3 % and 2 % growth respectively. The Watchung store’s opening added $12 million in sales but also increased promotional spend in the region, partially offsetting the gains from digital expansion. The company’s remodel and replacement strategy continues to lift same‑store sales, but the higher cost of renovations and the need to maintain competitive pricing in the New Jersey market have pressured margins.
In a statement, CEO John Smith said, “Our digital platform is delivering strong demand, and the new Watchung store is a testament to our commitment to community‑focused retail. We remain disciplined on costs and are focused on improving our margin profile.” CFO Maria Lopez added, “The lower patronage dividends from Wakefern and the shift in product mix have compressed our gross margin, but we are investing in technology and supply‑chain efficiencies to counterbalance these headwinds.”
The company maintained its full‑year 2026 guidance, reaffirming revenue expectations of $2.3 billion and operating income of $400 million. Management emphasized a continued focus on cost control, digital growth, and strategic store investments while acknowledging competitive pressures in the grocery sector. The guidance signals confidence in sustaining revenue growth despite margin challenges, and the company plans to monitor Wakefern’s rebate structure closely to protect profitability.
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