vlgea10q20090425ex99-1.htm

Exhibit 99.1

VILLAGE SUPER MARKET, INC.

REPORTS 27% INCREASE IN NET INCOME FOR THE QUARTER ENDED

APRIL 25, 2009

Contact:	Kevin Begley, CFO
	(973) 467-2200 – Ext. 220
	Kevin.Begley@Wakefern.com

Springfield, New Jersey – June 3, 2009 – Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the third quarter ended April 25, 2009.

Net income was $6,252,000 in the third quarter of fiscal 2009, an increase of 27% from the third quarter of the prior year. Net income increased primarily due to higher sales and lower operating expenses as a percentage of sales.

Sales were $293,474,000 in the third quarter of fiscal 2009, an increase of 7.3% from the third quarter of the prior year. Same store sales also increased 7.3% as the Franklin and Galloway stores, which opened in fiscal 2008, are now included in same store sales. The large same store sales increase is due to higher sales at the Franklin and Galloway stores, substantially improved transaction counts at most stores, and comparison to a weak third quarter of fiscal 2008 when same store sales increased only .4%. Inflation in the third quarter of fiscal 2009 was lower than the average inflation for calendar 2008. The Company believes the substantially improved transaction counts combined with minimal increases in the average transaction size in the third quarter of fiscal 2009 indicates customers continue to be cautious about the economy and, as a result, the Company continues to experience increased sale item penetration, coupon usage and trading down. Based on the sales trend in May, and a difficult comparison to the fourth quarter of 2008 when sales benefited from the distribution of economic stimulus checks, the Company expects same store sales to increase by 1.5% to 3.5% in the fourth quarter of fiscal 2009.

Gross profit as a percentage of sales decreased .35% in the third quarter of fiscal 2009 compared to the third quarter of the prior year primarily due to higher promotional spending and lower departmental gross margin percentages. These decreases were partially offset by lower LIFO expense in the third quarter of fiscal 2009. Promotional expense increased and departmental gross margin percentages decreased as the Company became more aggressive on promotions and price in response to the needs of customers in a difficult economic environment.

Operating and administrative expense decreased .91% as a percentage of sales in the third quarter of fiscal 2009 compared to the third quarter of the prior year primarily due to reduced payroll and other costs as a result of operating leverage due to the 7.3% same store sales increase.

Net income was $20,575,000 in the nine-month period of fiscal 2009, an increase of 31% from the prior year. Sales for the nine-month period of fiscal 2009 were $897,172,000, an increase of 8.1% from the prior year. Same store sales increased 5.9%.

With the opening of the Marmora, NJ store on May 31, 2009, Village Super Market now operates a chain of 26 supermarkets under the ShopRite name in New Jersey and eastern Pennsylvania.

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: local 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; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending patterns; the impact of higher energy prices; increased cost of goods sold, including increased costs from the Company’s principal supplier, Wakefern; the results of litigation, including the outcome of the litigation and approval process relating to the Washington store; the results of tax examinations; the results of union contract negotiations; competitive store openings; 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 CONDENSED STATEMENTS OF OPERATIONS

(in Thousands Except Per Share Amounts)(Unaudited)

	13 Wks. Ended			13 Wks. Ended			39 Wks. Ended			39 Wks. Ended
	Apr. 25, 2009			Apr. 26, 2008			Apr. 25, 2009			Apr. 26, 2008


Sales	$	293,474		$	273,406		$	897,172		$	829,794

Cost of sales		213,404			197,865			652,569			604,625

Gross profit		80,070			75,541			244,603			225,169

Operating and administrative expense		65,428			63,439			197,688			188,152

Depreciation and amortization expense		3,720			3,534			11,042			10,160

Operating income		10,922			8,568			35,873			26,857

Interest expense		(695	)		(758	)		(2,130	)		(2,197	)

Interest income		497			707			1,554			2,465

Income before income taxes		10,724			8,517			35,297			27,125

Income taxes		4,472			3,602			14,722			11,473

Net income	$	6,252		$	4,915		$	20,575		$	15,652

Net income per share(1):
Class A common stock:
Basic	$	.58		$	.46		$	1.91		$	1.48
Diluted	$	.47		$	.37		$	1.55		$	1.19
Class B common stock:
Basic	$	.38		$	.30		$	1.24		$	.96
Diluted	$	.37		$	.30		$	1.22		$	.96

Gross profit as a % of sales		27.3	%		27.6	%		27.3	%		27.1	%
Operating and admin. expense as a % of sales		22.3	%		23.2	%		22.0	%		22.7	%

(1) All per share amounts have been adjusted to reflect the two-for-one stock split effective January 22, 2009.

VILLAGE SUPER MARKET, INC.

EXECUTIVE OFFICES

733 Mountain Avenue

Springfield, New Jersey 07081

Phone: (973) 467-2200

Fax: (973)467-6582

To Our Shareholders:

Net income was $7,956,000 in the second quarter of fiscal 2009, an increase of 24% from the second quarter of the prior year. Net income increased primarily due to higher sales and lower operating expenses as a percentage of sales.

Sales were $312,714,000 in the second quarter of fiscal 2009, an increase of 6.8% from the second quarter of the prior year. Sales increased due to higher sales at the Franklin store, which opened on November 7, 2007, and a 5.9% increase in same store sales. Substantially improved transaction count and higher average transaction size in almost all stores, especially the Galloway store, which opened on October 3, 2007, contributed to the increase in same store sales. Inflation in the second quarter of fiscal 2009 was lower than the average inflation for calendar 2008. In addition, customers continue to be cautious due to concerns about the economy, resulting in continued increased sale item penetration and trading down.

Gross profit as a percentage of sales increased to 27.2% in the second quarter of fiscal 2009 compared to 27.1% in the second quarter of the prior year primarily due to improved departmental gross margin percentages and improved product mix. These improvements were partially offset by higher promotional spending and increased warehouse assessment charges from Wakefern. In addition, gross profit was favorably impacted by receipt of patronage dividends from Wakefern greater than amounts accrued in the second quarter of both fiscal 2009 and 2008. Promotional spending increased due to more of the cost of this year’s Thanksgiving loyalty program being allocated to the second quarter of fiscal 2009 than the prior year allocation due to changes in the program timing.

Operating and administrative expense decreased to 21.6% of sales in the second quarter of fiscal 2009 compared to 22.1% of sales in the second quarter of the prior year primarily due to reduced payroll costs in fiscal 2009, the prior year including store pre-opening costs, and operating leverage due to the 5.9% same store sales increase. These improvements were partially offset by increased snow removal costs and the prior year including refunds of property and liability insurance premiums. Payroll costs as a percentage of sales improved due to operating leverage resulting from the 5.9% same store sales increase and reduced labor due to store technology improvements.

Net income was $14,324,000 in the six-month period of fiscal 2009, an increase of 33% from the prior year. Sales for the six-month period of fiscal 2009 were $603,698,000, an increase of 8.5% from the prior year. Same store sales increased 5.1%.

On March 20, 2009, the Board of Directors declared an 8% increase in the quarterly cash dividend. The increased quarterly dividend of $.20 per Class A common share and $.13 per Class B common share will be payable April 23, 2009 to shareholders of record on April 2, 2009.

	Respectfully,


	James Sumas
March 20, 2009	Chairman of the Board

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: local 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; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending patterns; the impact of higher energy prices; increased cost of goods sold, including increased costs from the Company’s principal supplier, Wakefern; the results of litigation; the results of tax examinations; the results of union contract negotiations; competitive store openings; the rate of return on pension assets; the outcome of the Washington replacement store approval process; and other factors detailed herein and in the Company’s filings with the SEC.

VILLAGE SUPER MARKET, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in Thousands except Per Share Amounts)

(Unaudited)

	13 Wks. Ended			13 Wks. Ended			26 Wks. Ended			26 Wks. Ended
	Jan. 24, 2009			Jan. 26, 2008			Jan. 24, 2009			Jan. 26, 2008


Sales	$	312,714		$	292,829		$	603,698		$	556,388

Cost of sales		227,653			213,416			439,165			406,760

Gross profit		85,061			79,413			164,533			149,628

Operating and administrative expense		67,488			64,793			132,260			124,713

Depreciation and amortization		3,705			3,437			7,322			6,626

Operating income		13,868			11,183			24,951			18,289

Interest expense		(708	)		(832	)		(1,434	)		(1,439	)

Interest income		489			770			1,057			1,758

Income before income taxes		13,649			11,121			24,574			18,608

Income taxes		5,693			4,682			10,250			7,871

Net income	$	7,956		$	6,439		$	14,324		$	10,737



Net income per share(1):
Class A Common Stock:
Basic	$	.74		$	.61		$	1.33		$	1.01
Diluted	$	.60		$	.49		$	1.08		$	.82

Class B Common Stock:
Basic	$	.48		$	.39		$	.86		$	.66
Diluted	$	.47		$	.38		$	.85		$	.64

Gross profit as a % of sales		27.2	%		27.1	%		27.2	%		26.9	%

Operating and administrative expense as a % of sales		21.6	%		22.1	%		21.9	%		22.4	%

(1) All per share amounts have been adjusted to reflect the two-for-one stock split effective January 22, 2009.