VLGEA Q2 Earnings Rise 17% Y/Y on Pharmacy Sales, Stock Gains 2%

Shares of Village Super Market, Inc. VLGEA have gained 1.8% since it reported earnings for the second quarter of fiscal 2025 ended Jan. 25, 2025. This compares to the S&P 500 index’s 2.5% decline over the same time frame. Over the past month, the stock has lost 7.2% versus the S&P 500’s 5.9% fall.See the Zacks Earnings Calendar to stay ahead of market-making news.In the second quarter of fiscal 2025, Village Super Market reported earnings per share (EPS) of $1.14 for Class A common stock, growing from $0.97 in the prior-year quarter. Sales for the quarter were $599.7 million, rising 4.2% from $575.6 million in the prior-year period, driven by a 2.3% increase in same-store sales and contributions from the Old Bridge, NJ, replacement store that opened in March 2024.The company reported net income of $16.9 million for the second quarter of fiscal 2025, reflecting a 17% increase from $14.5 million in the prior-year period.Village Super Market, Inc. Price, Consensus and EPS Surprise  Village Super Market, Inc. price-consensus-eps-surprise-chart | Village Super Market, Inc. QuoteOther Key Business MetricsSame-store digital sales increased 9% year over year in the quarter, extending the company’s momentum in e-commerce. The gross profit margin declined to 28.35% from 28.40% due to higher promotional spending (0.16 percentage points), an unfavorable product mix shift (0.14 percentage points), and reduced patronage dividends and rebates from Wakefern (0.02 percentage points).However, these headwinds were partially offset by a higher departmental gross margin (0.17 percentage points), lower warehouse assessment charges from Wakefern (0.06 percentage points) and reduced LIFO charges (0.04 percentage points).Operating and administrative expenses as a percentage of sales improved to 23.22% from 23.71%, benefiting from lower facility insurance costs, decreased legal and consulting fees, and sales leverage on occupancy and facility costs.Management CommentaryThe company attributed its sales growth to increased customer engagement in its remodeled stores, higher pharmacy sales, and inflationary price trends in the meat and dairy segments. Management also highlighted disciplined cost-control efforts, which contributed to lower expenses as a percentage of sales.However, gross-margin pressures from promotions and product mix changes remain a consideration.Factors Influencing PerformanceLower interest expenses helped boost net income, as Village Super Market reported a decline in interest expenses for the quarter due to reduced outstanding debt balances. However, interest income also declined, led by lower interest rates on variable-rate notes receivable from Wakefern and a decrease in demand deposits invested at Wakefern.The company's effective tax rate stood at 31.1%, slightly down from 31.5% a year earlier, providing a modest benefit to net earnings.Other DevelopmentsVillage Super Market operates 34 supermarkets under the ShopRite and Fairway banners, along with three Gourmet Garage specialty markets in New York City. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Village Super Market, Inc. (VLGEA): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks