Village Super Market Net Income Falls 12% in Q4 as Higher Costs Offset Revenue Growth

Village Super Market, Inc. (VLGEA) reported a 12.4% drop in fourth-quarter fiscal 2026 earnings to 92 cents per Class A share, down from $1.05 per share in the same period last year. Net income fell 12.3% to $13.6 million, even as quarterly revenues grew 1.7% to $609.6 million. Same-store sales increased 1.6% during the quarter, aided by a 6% rise in digital ordering and solid performance across fresh produce and pharmacy departments.

The earnings squeeze highlights how inflation in operational costs can weaken profitability despite steady grocery demand. Operating expenses climbed to 23.92% of revenue, driven higher by increased wages, insurance premiums, technology expenses, and store pre-opening costs. Unplanned nonrecurring expenses from power outages and fire incidents also pressured margins, outweighing a slight expansion in fourth-quarter gross profit margin to 28.24%.

Investors will watch how effectively the grocery operator manages expense growth across its store footprint while integrating new locations like its East Orange, New Jersey replacement facility. With 34 supermarkets operating under the ShopRite and Fairway names alongside three Gourmet Garage specialty stores, the company continues to invest in store upgrades and digital channels to sustain top-line growth.