Shares of Village Super Market, Inc. (VLGEA Quick QuoteVLGEA - Free Report) have declined 14.2% since the company reported results for the quarter ended April 25, 2026, underperforming the S&P 500 index, which fell 2.8% over the same period. Over the past month, the stock has dropped 8.4% compared with a 0.8% decline for the broader market.

Village reported third-quarter fiscal 2026 earnings per Class A share of 61 cents, which declined from 75 cents.

Sales of $572.6 million indicated a 1.6% rise from $563.7 million in the prior-year quarter. Net income declined to $9 million from $11.2 million a year earlier.

Same-store sales slipped 0.2%, although management said they would have increased 1.3% excluding the estimated impact of Winter Storm Fern. Same-store digital sales rose 9% year over year.

Village Super Market, Inc. Price, Consensus and EPS Surprise

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Other Key Business Metrics

Gross profit margin narrowed to 28.08% from 28.77% in the prior-year period. Operating and administrative expenses increased to 25.11% of sales from 24.78%, reflecting higher utility, repair and weather-related maintenance costs, increased professional-service expenses, higher insurance costs and increased employee-related expenses. Operating income fell to $8.4 million from $13.7 million a year earlier.

Management Commentary

Management highlighted the impact of Winter Storm Fern, which caused store closures at the beginning of the quarter and shifted some customer demand into the final week of the second quarter as shoppers stocked up ahead of the storm. The company noted that, excluding the storm’s estimated impact, same-store sales would have increased 1.3% in the quarter. Management also pointed to continued digital sales growth, strength in recently replaced or remodeled stores and higher sales in fresh-food departments as positive contributors.

Factors Influencing Quarterly Performance

Sales growth was driven primarily by the opening of the Watchung replacement store, while comparable-store performance was pressured by storm-related disruptions, deflation in egg prices and sales cannibalization from the new location. Pharmacy sales contributed positively despite lower pricing associated with the Inflation Reduction Act.

Margin performance was affected by lower patronage dividends and rebates received from Wakefern, increased warehouse assessment charges, an unfavorable product mix and higher promotional spending. On the expense side, operating leverage weakened because of weather-related store closures and demand shifts, while utilities, repairs, maintenance, professional fees and insurance costs all increased.

The quarter also benefited from a lower effective tax rate of 16.2% compared with 30.6% a year earlier, primarily due to excess tax benefits from vested stock-based compensation. Even so, net income declined because of weaker operating performance.

Other Developments

Village disclosed that fiscal 2026 included pension settlement charges related to the termination of a company-sponsored plan. For the first 39 weeks of fiscal 2026, adjusted net income was $39.1 million compared with reported net income of $38.8 million.