Business
Village Super Market, Inc. Reports Results for the Fourth Quarter Ended July 25, 2020
SPRINGFIELD, N.J., Oct. 07, 2020 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the fourth quarter
About this update from Village Super Market, Inc.
[{"type":"text","content":"SPRINGFIELD, N.J., Oct. 07, 2020 (GLOBE NEWSWIRE) -- Village Super Market, Inc. (NSD-VLGEA) today reported its results of operations for the fourth quarter ended July 25, 2020.\n Net income was $9,229,000 in the fourth quarter of fiscal 2020 compared to $6,729,000 in the fourth quarter of fiscal 2019. The fourth quarter of fiscal 2020 includes a $1,911,000 (net of tax) gain for Superstorm Sandy insurance proceeds received, a $2,512,000 benefit from a federal net operating loss carryback at a rate higher than the current statutory tax rate, a $1,423,000 (net of tax) gain arising from the breakup of Village’s initial “stalking horse” bid under the January 20, 2020 Fairway Asset Purchase Agreement, transaction costs incurred for the Fairway acquisition of $1,888,000 (net of tax) and amortization of acquisition related inventory step-up of $355,000 (net of tax). Fiscal 2019 includes a tax benefit of $777,000 related to the favorable settlement of a tax audit with the New Jersey Division of Taxation. Excluding these items from both periods, net income decreased 6% in fiscal 2020 compared to the prior year. Sales were $501,478,000 in the fourth quarter of fiscal 2020 compared to $418,366,000 in the fourth quarter of fiscal 2019. Sales increased due to the Fairway acquisition on May 14, 2020, the opening of the Stroudsburg replacement store on November 1, 2019, the Gourmet Garage acquisition on June 24, 2019 and a same store sales increase of 7.5%. Same store sales increased due primarily to increased customer demand across most stores as a result of the continued impact of the COVID-19 pandemic. Following the outbreak, average basket sizes increased and transaction counts decreased as customers consolidated shopping trips. Digital sales growth accelerated through both ShopRite from Home and 3rd party online grocery pickup and delivery services, increasing 240% in the 4th quarter of fiscal 2020 compared to the 4th quarter of fiscal 2019. Sales in Gourmet Garage and Fairway have declined significantly compared to historical levels due primarily to population migration out of Manhattan during the pandemic. 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...