Village Super Market(VLGEA) - 2025 Q1 - Quarterly Report

Financial Performance - Sales for the 13 weeks ended October 26, 2024, were $557,697, an increase of 4.0$535,000 for the same period in 2023, driven by a 2.4% increase in same store sales and the opening of a new store[65]. - Gross profit as a percentage of sales increased to 29.03% in the 13 weeks ended October 26, 2024, up from 28.52% in the prior year, primarily due to increased patronage dividends and rebates from Wakefern[66]. - Operating and administrative expenses as a percentage of sales rose to 24.66% in the 13 weeks ended October 26, 2024, compared to 24.29% in the same period last year, mainly due to increased employee costs and external fees related to digital sales[67]. - Net income for the 13 weeks ended October 26, 2024, was $12,803, compared to$11,585 for the same period in 2023, reflecting a net income margin increase to 2.30% from 2.16%[71]. - The effective income tax rate decreased to 31.2% in the 13 weeks ended October 26, 2024, from 31.5% in the prior year[69]. Capital Expenditures and Investments - Capital expenditures for the 13 weeks ended October 26, 2024, totaled $11,701, with a budget of$75,000 planned for fiscal 2025, including new store constructions and technology upgrades[75][76]. - Capital expenditures are budgeted at $75,000 for fiscal 2025, including costs for new store construction and technology upgrades[93]. Store Operations and Expansion - The company closed an 8,400 sq. ft. Gourmet Garage store in New York City on November 1, 2023, with no material impact on consolidated financial statements[62]. - An 83,000 sq. ft. replacement ShopRite store opened in Old Bridge, NJ, on March 17, 2024, replacing a 32,000 sq. ft. store[62]. - The company has ongoing evaluations for store remodels and expansions, focusing on increasing selling space[62]. - The Company expects same store sales to increase between 1.0$0.25 per Class A and $0.1625 per Class B share in 2025[94]. - Cash and cash equivalents, along with operating cash flow and the Credit Facility, are deemed sufficient for working capital and capital expenditures for the foreseeable future[94]. Risks and Vulnerabilities - Approximately 91% of employees are covered by collective bargaining agreements, which may impact financial results if work stoppages occur[99]. - The Company is vulnerable to economic downturns in New Jersey, New York, Pennsylvania, and Maryland, which could adversely affect operations[96]. - The Company relies heavily on Wakefern for merchandise and support services, and any adverse changes in this relationship could impact business operations[97]. - The Company expects contributions to underfunded multi-employer pension plans may increase, affecting future financial obligations[102]. - The Company utilizes a combination of insurance and self-insurance for potential liabilities, with projections subject to variability[103].