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Village Super Market, Inc. Announces Results for the Second

SPRINGFIELD, NJ, March 09, 2022 (GLOBE NEWSWIRE) — Village Super Market, Inc. (NASDAQ: VLGEA) (the “Company” or “Village”) today announced its operating results for the second quarter ended January 29, 2022 .

Second Quarter Highlights

  • Net income of $10.1 million, an increase of 122% from $4.6 million in the second quarter last year
  • Same-store sales increased 4.4%; on a two-year cumulative basis, same-store sales increased by 10.9%
  • Same-store digital sales remained stable; on a two-year cumulative basis, same-store digital sales grew 154%

Highlights of the first half of the 2022 financial year

  • Net income of $17.5 million, an increase of 121% from $7.9 million in the first half of fiscal 2021.
  • Same-store sales increased 3.4%; on a two-year cumulative basis, same-store sales increased by 10.0%
  • Same-store digital sales remained stable; on a two-year cumulative basis, same-store digital sales grew 154%

Results for the second quarter of fiscal 2022

Sales were $537.4 million in the 13 weeks ended January 29, 2022, compared to $522.8 million in the 13 weeks ended January 23, 2021. Sales increased due to a same store sales increase of 4.4%, partially offset by the closure of the Silver Spring, Maryland Store in February 2021. Same store sales increased primarily due to higher sales in New York stores , retail price inflation and continued growth in Supplemental Nutrition Assistance Program (“SNAP”) benefit redemptions. The increase in the number of transactions was partially offset by the decrease in basket size and same-store digital sales remained flat as we cycled from the first few months following the COVID-19 outbreak in our area. commercial.

New stores and replacement stores are included in comparable store sales for the quarter after the store has been in operation for four full quarters. Store renovations and expansions are immediately included in comparable store sales.

Gross margin as a percentage of sales increased to 27.84% in the 13 weeks ended January 29, 2022 from 27.13% in the 13 weeks ended January 23, 2021 primarily due to higher percentages service gross margin (0.63%), a favorable evolution in the product mix (0.12%) and lower assessment costs for the Wakefern warehouse (0.20%), partially offset by the decrease in rebates and rebates received from Wakefern (0.24%). Departmental gross margins increased primarily due to pricing initiatives and improvements to commissary operations.

Operating and administrative expenses as a percentage of sales decreased to 23.54% in the 13 weeks ended January 29, 2022 from 24.19% in the 13 weeks ended January 23, 2021 primarily due to lower labor and benefits costs (0.70%) and lower advertising spend (0.12%), partially offset by higher maintenance and repair costs (0.10%) ) and an increase in external fees and transport costs associated with digital sales (0.07%). Labor costs declined due to productivity initiatives, labor shortages and sales leverage, partially offset by minimum wage and pay rate increases focused on Requirement.

Depreciation expense decreased in the 13 weeks ended January 29, 2022 compared to the 13 weeks ended January 23, 2021 primarily due to the closure of Silver Spring, Maryland ShopRite in February 2021.

The effective tax rate was 30.7% during the 13 weeks ended January 29, 2022, compared to 29.9% during the 13 weeks ended January 23, 2021. The increase in the effective tax rate is mainly due to a greater distribution of the higher state tax rate. jurisdictions.

Results for the first half of the 2022-2022 financial year

Sales were $1.03 billion in the 26-week period ended January 29, 2022, compared to $1.01 billion in the 26-week period ended January 23, 2021. Sales increased increased due to a comparable store sales increase of 3.4%, partially offset by the closure of the Silver Spring, Maryland Store in February 2021. Same store sales increased primarily due to higher sales in New York stores, retail price inflation and continued growth in SNAP redemptions. The increase in the number of transactions was partially offset by the decrease in basket size and same-store digital sales remained flat as we cycled from the first few months following the COVID-19 outbreak in our area. commercial.

Gross margin as a percentage of sales increased to 28.09% in the 26-week period ended January 29, 2022 from 27.62% in the 26-week period ended January 23, 2021 primarily due to higher service gross margin percentages (0.66%) and a favorable change in product mix (0.10%), partially offset by higher warehouse valuation fees from Wakefern (0.17%) and the decrease in rebates and rebates received from Wakefern (0.12%). Departmental gross margins increased primarily due to pricing initiatives and improvements to commissary operations.

Operating and administrative expenses as a percentage of sales decreased to 24.02% during the 26-week period ended January 29, 2022, from 24.76% during the 26-week period ended January 23, 2022. January 2021, mainly due to lower labor and benefits costs (0.77%) and lower advertising expenses (0.12%), partially offset by higher external expenses and costs transport costs associated with digital sales (0.11%). Labor costs declined due to productivity initiatives, labor shortages and sales leverage, partially offset by minimum wage and pay rate increases focused on Requirement.

Depreciation expense decreased in the 26-week period ended January 29, 2022 compared to the 26-week period ended January 23, 2021 primarily due to the closure of Silver Spring, Maryland ShopRite in February 2021.

The effective tax rate was 30.7% during the 26 weeks ended January 29, 2022, compared to 29.9% during the 26 weeks ended January 23, 2021. The rate increase Effective tax rate is primarily due to a greater distribution of the top state tax rate. jurisdictions.

Village Super Market operates a chain of 34 supermarkets in New Jersey, New York, Maryland and Pennsylvania under the ShopRite and Fairway banners and three Gourmet Garage specialty markets in New York.

Forward-looking statements

All statements, other than statements of historical fact, included in this press release are or may be deemed to be forward-looking statements within the meaning of federal securities law. The Company cautions the reader that there is no guarantee that actual results or business conditions will not differ materially from future results, whether expressed, implied or implied by these forward-looking statements. The Company undertakes no obligation to update any forward-looking statements to reflect developments or information obtained after the date hereof. The following are among the key factors that could cause actual results to differ from the forward-looking statements: risks and uncertainties related to the COVID-19 pandemic, including, among other things, the duration and severity of the pandemic , changes in customer buying habits, disruptions to supply chains, inability of the workforce to work due to illness, quarantine or government mandates including travel restrictions and stay-at-home orders, effectiveness and duration of COVID-19 recovery plans; general economic conditions; competitive pressures in the Company’s operating environment; the Company’s ability to maintain and improve its sales and margins; the ability to attract and retain qualified associates; the availability of new store locations; risks, uncertainties and challenges associated with the acquisition of Fairway, including underperformance against our expectations, additional capital requirements, unforeseen expenses or delays, inaccurate assumptions or our inability to achieve anticipated cost savings or other synergies, competitive factors in the marketplace, and difficulties integrating the business, including merging corporate cultures, branding culture, expanding the food production and compliance of acquired business technology, standards, processes, procedures and controls; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending habits; the impact of changes in energy prices; increases in the cost of goods sold, including increases in the costs of the Company’s primary supplier, Wakefern; disruptions or changes in Wakefern’s operations; the results of litigation; the results of tax audits; the results of collective bargaining negotiations; competitive store openings and closings; the rate of return on pension assets; and other factors detailed herein and in the Company’s filings with the SEC.

VILLAGE SUPER MARKET, INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts) (Unaudited)

13 weeks completed 26 weeks completed
January 29,
2022
January 23,
2021
January 29,
2022
January 23,
2021
Sales $ 537 408 $ 522 818 $ 1,031,619 $ 1,012,954
Cost of sales 387,797 380,973 741 829 733 146
Gross profit 149,611 141,845 289,790 279,808
Operating and administrative expenses 126,487 126,449 247,770 250,812
Depreciation and amortization 8,460 8,793 16,795 17,507
Operating result 14,664 6,603 25,225 11,489
Interest expense (963 ) (982 ) (1,932 ) (1,969 )
interest income 905 874 1,881 1,766
income before taxes 14,606 6,495 25,174 11,286
Income taxes 4,477 1,940 7,717 3,370
Net revenue $ 10,129 $ 4,555 $ 17,457 $ 7,916
Net earnings per share:
Class A common shares:
Basic $ 0.78 $ 0.35 $ 1.34 $ 0.61
Diluted $ 0.69 $ 0.31 $ 1.20 $ 0.54
Class B common shares:
Basic $ 0.50 $ 0.23 $ 0.87 $ 0.39
Diluted $ 0.50 $ 0.23 $ 0.87 $ 0.39
Gross profit as % of sales 27.84 % 27.13 % 28.09 % 27.62 %
Operating and administrative expenses as % of revenue 23.54 % 24.19 % 24.02 % 24.76 %
Contact: John Van Orden, Chief Financial Officer
(973) 467-2200
[email protected]