Village Super Market(US:VLGEA) ZACKS·2026-03-09 17:50Core Viewpoint - Village Super Market, Inc. (VLGEA) has shown strong performance in its recent earnings report, with notable growth in sales and net income, despite some pressures on margins and expenses [2][5]. Financial Performance - For the second quarter of fiscal 2026, Class A shares earned $1.21, up from $1.14 year-over-year, driven by stronger comparable-store performance and contributions from a new replacement store [2]. - Sales increased by 6.9% year-over-year to $641 million from $599.7 million, while net income rose by 6% to $17.9 million from $16.9 million [2]. Comparable Sales and Digital Growth - Same-store sales increased by 4.8% during the quarter, with digital sales seeing a significant rise of 15% year-over-year [3]. - The surge in comparable-store sales was partly due to higher purchases ahead of Winter Storm Fern, although excluding this impact, same-store sales would have only increased by 1.4% [4]. Margin and Expense Trends - Gross profit margin declined to 28.06% from 28.35% in the prior year, attributed to lower patronage dividends, an unfavorable product mix, and increased promotional spending [5]. - Operating and administrative expenses improved slightly as a percentage of sales, decreasing to 23.07% from 23.22%, mainly due to lower employee and advertising costs [6]. Additional Financial Factors - Depreciation and amortization expenses decreased slightly, and interest expenses fell due to lower average outstanding debt balances [7]. - The effective tax rate improved to 30.7% from 31.1% in the previous year [8]. Other Developments - The company has been expanding its store footprint, opening a replacement store in Watchung, N.J., which contributed to revenue growth [9].