Wed, Dec 4, 8:52 PM (72 days ago)
Village Super Market, Inc. (VLGEA) reported a solid performance for the 13 weeks ended October 26, 2024, with sales reaching $557,697, marking a 4.0% increase from the previous year. This growth was driven by a 2.4% rise in same-store sales and the opening of a new replacement store. Gross profit improved to 29.03% of sales, aided by increased patronage dividends and a favorable product mix. Net income rose to $12,803 from $11,585, reflecting effective cost management despite rising employee and utility expenses. Operating cash flow was $20,175, up from $18,379, bolstered by net income and working capital changes. The company plans $75,000 in capital expenditures for fiscal 2025, focusing on new store construction and upgrades. Liquidity remains strong, with sufficient cash reserves and credit facilities to support ongoing operations. However, the company faces uncertainties, including competitive pressures, economic fluctuations, and potential impacts from legislative changes on labor costs. The effective tax rate is projected between 31.0% and 32.0% for fiscal 2025. Overall, Village Super Market appears well-positioned for continued growth, albeit with caution regarding external economic factors.