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

- URL: https://stocks.freetheai.org/news/village-super-market-net-income-falls-12-in-q4-as-higher-costs-offset-revenue-6621b8
- Published: 2026-10-12T16:46:00Z
- Category: earnings; sentiment: bearish; impact: medium
- Symbols: [NASDAQ:VLGEA](https://stocks.freetheai.org/symbols/NASDAQ-VLGEA)
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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.

## Key points

- Village Super Market fourth-quarter Class A earnings per share fell 12.4% year-over-year to $0.92.
- Quarterly revenues rose 1.7% to $609.6 million, supported by a 1.6% increase in same-store sales and a 6% gain in digital sales.
- Operating expenses rose to 23.92% of sales due to higher wages, insurance premiums, occupancy costs, and pre-opening expenses.
- Full-year fiscal 2026 net income decreased to $52.5 million from $56.4 million, despite total sales rising 3.7% to $2.4 billion.

## Questions and answers

### Why did Village Super Market earnings decline in Q4 fiscal 2026?

Net income fell 12.3% to $13.6 million primarily due to higher operating costs, including increased employee wages, insurance premiums, technology expenses, and store pre-opening costs, which offset a 1.7% gain in total sales.

### How much revenue did Village Super Market generate in fiscal year 2026?

Village Super Market generated $2.4 billion in total sales for fiscal 2026, marking a 3.7% increase compared to $2.3 billion in fiscal 2025.

### What store banners does Village Super Market operate?

The company operates 34 supermarkets under the ShopRite and Fairway banners across New Jersey, New York, Maryland, and Pennsylvania, as well as three Gourmet Garage specialty markets in New York City.