Shares of Village Super Market, Inc. (VLGEA Quick QuoteVLGEA - Free Report) have declined 3.1% since the company reported its earnings for the quarter ended July 25, 2026, compared with the S&P 500 index’s 0.6% growth over the same period. Over the past month, the stock has fallen 1.2%, underperforming the S&P 500’s 2.3% gain.

Village reported fourth-quarter fiscal 2026 earnings per Class A share of 92 cents, which decreased 12.4% from $1.05 in the prior-year quarter.  

Revenues of $609.6 million denoted a 1.7% rise from $599.7 million in the year-ago quarter. 

However, net income declined 12.3% year over year to $13.6 million from $15.5 million. Adjusted net income declined to $13.6 million from $15.6 million a year earlier, reflecting profitability pressures despite higher sales.

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

Village Super Market, Inc. price-consensus-eps-surprise-chart | Village Super Market, Inc. Quote

Village’s Comparable Sales and Digital Business Show Growth

Same-store sales increased 1.6% during the fourth quarter, supported by digital sales growth, strong performance in fresh and pharmacy departments, and continued improvements at recently remodeled and replacement stores. Same-store digital sales increased approximately 6%, highlighting continued demand for the company's online shopping offerings.

The company also benefited from the opening of its East Orange, NJ, replacement store on May 27, 2026. However, egg price deflation, competitive store openings and sales cannibalization from the East Orange location partially offset these gains.

Gross Margin Improvement Offset by Rising Operating Costs

Village’s fourth-quarter gross profit margin improved to 28.24% from 28.17% a year earlier. The improvement primarily reflected stronger departmental margins, driven by better shrink management and commissary operations.
However, an unfavorable product mix, lower patronage dividends and rebates from Wakefern, higher promotional spending and increased warehouse assessment charges partially offset the improvement.

Operating and administrative expenses increased to 23.92% of sales from 23.11% in the prior-year quarter. On an adjusted basis, the expense ratio rose to 23.92% from 23.34%.

The increase reflected higher employee costs, store pre-opening expenses, technology and payment processing costs, occupancy expenses, insurance premiums and professional fees. Nonrecurring expenses associated with fire and power outage incidents also contributed, while lower advertising costs provided some relief.

Consequently, operating income declined to $17.4 million from $20.2 million in the year-earlier period.

Village’s Full-Year Update

For fiscal 2026, total sales increased 3.7% to $2.4 billion from $2.3 billion in fiscal 2025. Same-store sales advanced 2.2%, while same-store digital sales grew approximately 11%.

Despite this revenue growth, annual net income declined to $52.5 million from $56.4 million, while Class A earnings per share fell to $3.54 from $3.81.

For fiscal 2026, gross profit margin declined to 28.2% from 28.6% in fiscal 2025.

Other Developments

Village continued investing in its store network, including the East Orange replacement store opening in May 2026. This followed the opening of its Watchung, NJ, replacement store in April 2025, with both locations contributing to fiscal 2026 sales growth.

The company also recorded a pension settlement charge during fiscal 2026 related to the termination of a company-sponsored plan. This adjustment affected the reconciliation between reported and adjusted annual earnings.

Village currently operates 34 supermarkets across New Jersey, New York, Maryland and Pennsylvania under the ShopRite and Fairway banners, alongside three Gourmet Garage specialty markets in New York City.