GlobeNewswire Inc | Dec 8, 2021 08:00AM EST

December 08, 2021

SPRINGFIELD, N.J., Dec. 08, 2021 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NASDAQ:VLGEA) (the "Company" or "Village") today reported its results of operations for the first quarter ended October30, 2021.

First Quarter Highlights

-- Net income of $7.3 million, an increase of 118% compared to $3.4 million in the first quarter of the prior year -- Same store sales increased 2.3%; on a two-year stacked basis same store sales increased 9.1% -- Same store digital sales were flat; on a two-year stacked basis same store digital sales increased 153%

First Quarter of Fiscal 2022 Results

Sales were $494.2 million in the 13 weeks ended October30, 2021 compared to $490.1 million in the 13 weeks ended October24, 2020. Sales increased due to an increase in same store sales of 2.3% partially offset by the closure of the Silver Spring, Maryland store in February 2021. 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. Food inflation and increased Supplemental Nutrition Assistance Program ("SNAP") benefits continue to positively impact sales.

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 28.36% in the 13 weeks ended October30, 2021 compared to 28.15% in the 13 weeks ended October24, 2020 due primarily to increased departmental gross margin percentages (.68%), a favorable change in product mix (.08%) and lower promotional spending (.03%) partially offset by increased warehouse assessment charges from Wakefern (.57%). 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 24.54% in the 13 weeks ended October30, 2021 compared to 25.37% in the 13 weeks ended October24, 2020. The decrease in Operating and administrative expenses is due primarily to lower payroll costs (.89%) and less advertising spending (.11%) partially offset by increased external fees and transportation costs associated with digital sales (.16%). Payroll costs decreased due to productivity initiatives and labor shortages despite minimum wage and demand driven pay rate increases.

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 Companys 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 Companys 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 Companys filings with the SEC.

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

13 Weeks Ended October 30, October 24, 2021 2020 Sales $ 494,211 $ 490,136 Cost of sales 354,031 352,173 Gross profit 140,180 137,963 Operating and administrative expense 121,283 124,363 Depreciation and amortization 8,335 8,714 Operating income 10,562 4,886 Interest expense (970 ) (987 ) Interest income 976 891 Income before income taxes 10,568 4,790 Income taxes 3,240 1,430 Net income $ 7,328 $ 3,360 Net income per share: Class A common stock: Basic $ 0.56 $ 0.26 Diluted $ 0.50 $ 0.23 Class B common stock: Basic $ 0.37 $ 0.17 Diluted $ 0.37 $ 0.17 Gross profit as a % of sales 28.36 % 28.15 %Operating and administrative expense as a % 24.54 % 25.37 %of sales

Contact: John Van Orden, CFO (973) 467-2200 villageinvestorrelations@wakefern.com