Village Super Market, Inc. Reports Results for the Second Quarter Ended January 29, 2022
March 09 2022 - 7:00AM
Village Super Market, Inc. (NASDAQ:VLGEA) (the "Company" or
"Village") today reported its results of operations for the second
quarter ended January 29, 2022.
Second Quarter Highlights
- Net income of $10.1
million, an increase of 122% compared to $4.6 million in the second
quarter of the prior year
- Same store sales
increased 4.4%; on a two-year stacked basis same store sales
increased 10.9%
- Same store digital
sales were flat; on a two-year stacked basis same store digital
sales increased 154%
1st Half of Fiscal 2022
Highlights
- Net income of $17.5
million, an increase of 121% compared to $7.9 million in the first
half of fiscal 2021.
- Same store sales
increased 3.4%; on a two-year stacked basis same store sales
increased 10.0%
- Same store digital
sales were flat; on a two-year stacked basis same store digital
sales increased 154%
Second Quarter of Fiscal 2022
Results
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 an increase in
same store sales of 4.4% partially offset by the closure of the
Silver Spring, Maryland store in February 2021. Same store sales
increased due primarily to increased sales in New York City stores,
retail price inflation and continued growth in Supplemental
Nutrition Assistance Program ("SNAP") benefit redemptions.
Increases in transaction counts were partially offset by decreased
basket sizes and same store digital sales were flat as we cycled
against the initial months following the COVID-19 outbreak in our
trade area.
New stores and replacement stores are included
in same store sales in the quarter after the store has been in
operation for four full quarters. Store renovations and expansions
are included in same store sales immediately.
Gross profit as a percentage of sales increased
to 27.84% in the 13 weeks ended January 29, 2022 compared to
27.13% in the 13 weeks ended January 23, 2021 due primarily to
increased departmental gross margin percentages (.63%), a favorable
change in product mix (.12%) and decreased warehouse assessment
charges from Wakefern (.20%), partially offset by decreased
patronage dividends and rebates received from Wakefern (.24%).
Department gross margins increased due primarily to pricing
initiatives and improvements in commissary operations.
Operating and administrative expense as a
percentage of sales decreased to 23.54% in the 13 weeks ended
January 29, 2022 compared to 24.19% in the 13 weeks ended
January 23, 2021 due primarily to lower labor costs and fringe
benefits (.70%) and less advertising spending (.12%), partially
offset by higher maintenance and repair costs (0.10%) and increased
external fees and transportation costs associated with digital
sales (.07%). Labor costs decreased due to productivity
initiatives, labor shortages and sales leverage partially offset by
minimum wage and demand driven pay rate increases.
Depreciation and amortization expense decreased
in the 13 weeks ended January 29, 2022 compared to the 13
weeks ended January 23, 2021 due primarily to closure of the
Silver Spring, Maryland ShopRite in February 2021.
The effective income tax rate was 30.7% in the
13 weeks ended January 29, 2022 compared to 29.9% in the 13
weeks ended January 23, 2021. The increase in the effective
income tax rate is due primarily to greater apportionment in higher
state tax rate jurisdictions.
1st Half of Fiscal 2022
Results
Sales were $1.03 billion in the 26 weeks ended
January 29, 2022 compared to $1.01 billion in the 26 weeks
ended January 23, 2021. Sales increased due to an increase in
same store sales of 3.4% partially offset by the closure of the
Silver Spring, Maryland store in February 2021. Same store sales
increased due primarily to increased sales in New York City stores,
retail price inflation and continued growth in SNAP benefit
redemptions. Increases in transaction counts were partially offset
by decreased basket sizes and same store digital sales were flat as
we cycled against the initial months following the COVID-19
outbreak in our trade area.
Gross profit as a percentage of sales increased
to 28.09% in the 26 weeks ended January 29, 2022 compared to
27.62% in the 26 weeks ended January 23, 2021 due primarily to
increased departmental gross margin percentages (.66%) and a
favorable change in product mix (.10%), partially offset by
increased warehouse assessment charges from Wakefern (.17%) and
decreased patronage dividends and rebates received from Wakefern
(.12%). Department gross margins increased due primarily to pricing
initiatives and improvements in commissary operations.
Operating and administrative expense as a
percentage of sales decreased to 24.02% in the 26 weeks ended
January 29, 2022 compared to 24.76% in the 26 weeks ended
January 23, 2021 due primarily to lower labor costs and fringe
benefits (.77%) and less advertising spending (.12%), partially
offset by increased external fees and transportation costs
associated with digital sales (.11%). Labor costs decreased due to
productivity initiatives, labor shortages and sales leverage
partially offset by minimum wage and demand driven pay rate
increases.
Depreciation and amortization expense decreased
in the 26 weeks ended January 29, 2022 compared to the 26
weeks ended January 23, 2021 due primarily to closure of the
Silver Spring, Maryland ShopRite in February 2021.
The effective income tax rate was 30.7% in the
26 weeks ended January 29, 2022 compared to 29.9% in the 26
weeks ended January 23, 2021. The increase in the effective
income tax rate is due primarily to greater apportionment in higher
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 City.
Forward Looking Statements
All statements, other than statements of
historical fact, included in this Press Release are or may be
considered forward-looking statements within the meaning of federal
securities law. The Company cautions the reader that there is no
assurance that actual results or business conditions will not
differ materially from future results, whether expressed, suggested
or implied by such forward-looking statements. The Company
undertakes no obligation to update forward-looking statements to
reflect developments or information obtained after the date hereof.
The following are among the principal factors that could cause
actual results to differ from the forward-looking statements: risks
and uncertainties related to the COVID-19 pandemic, including among
others, the duration and severity of the pandemic, shifts in
customers buying patterns, 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,
the effectiveness and duration of COVID-19 stimulus packages;
general economic conditions; competitive pressures from the
Company’s operating environment; the ability of the Company 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
Fairway acquisition, including under-performance relative to our
expectations, additional capital requirements, unforeseen expenses
or delays, imprecise assumptions or our inability to achieve
projected cost savings or other synergies, competitive factors in
the marketplace and difficulties integrating the business,
including merging company cultures, cultivating brand strategy,
expansion of food production and conforming the acquired company's
technology, standards, processes, procedures and controls; the
availability of capital; the liquidity of the Company; the success
of operating initiatives; consumer spending patterns; the impact of
changing energy prices; increased cost of goods sold, including
increased costs from the Company’s principal supplier, Wakefern;
disruptions or changes in Wakefern's operations; the results of
litigation; the results of tax examinations; the results of union
contract 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 STATEMENTS
OF OPERATIONS(In thousands, except per share amounts)
(Unaudited)
|
13 Weeks Ended |
|
26 Weeks Ended |
|
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
expense |
|
126,487 |
|
|
|
126,449 |
|
|
|
247,770 |
|
|
|
250,812 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
8,460 |
|
|
|
8,793 |
|
|
|
16,795 |
|
|
|
17,507 |
|
|
|
|
|
|
|
|
|
Operating income |
|
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 income
taxes |
|
14,606 |
|
|
|
6,495 |
|
|
|
25,174 |
|
|
|
11,286 |
|
|
|
|
|
|
|
|
|
Income taxes |
|
4,477 |
|
|
|
1,940 |
|
|
|
7,717 |
|
|
|
3,370 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
10,129 |
|
|
$ |
4,555 |
|
|
$ |
17,457 |
|
|
$ |
7,916 |
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
Class A common stock: |
|
|
|
|
|
|
|
Basic |
$ |
0.78 |
|
|
$ |
0.35 |
|
|
$ |
1.34 |
|
|
$ |
0.61 |
|
Diluted |
$ |
0.69 |
|
|
$ |
0.31 |
|
|
$ |
1.20 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
Class B common stock: |
|
|
|
|
|
|
|
Basic |
$ |
0.50 |
|
|
$ |
0.23 |
|
|
$ |
0.87 |
|
|
$ |
0.39 |
|
Diluted |
$ |
0.50 |
|
|
$ |
0.23 |
|
|
$ |
0.87 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
Gross profit as a % of
sales |
|
27.84 |
% |
|
|
27.13 |
% |
|
|
28.09 |
% |
|
|
27.62 |
% |
Operating and administrative
expense as a % of sales |
|
23.54 |
% |
|
|
24.19 |
% |
|
|
24.02 |
% |
|
|
24.76 |
% |
Contact: |
John Van Orden, CFO |
|
(973) 467-2200 |
|
villageinvestorrelations@wakefern.com |
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