VILLAGE SUPER MARKET INC 10-Q

ITEM 1. FINANCIAL STATEMENTS VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) October 25, 2025 July 26, 2025 ASSETS Current assets Cash and cash equivalents $ 117,689 $ 110,699 Merchandise inventories 54,146 51,424 Patronage dividend receivable 19,604 14,144 Income taxes receivable 2,348 5,265 Other current assets 19,122 19,223 Assets held for sale — 4,354 Total current assets 212,909 205,109 Property, equipment and fixtures, net 320,549 322,889 Operating lease assets 245,952 252,291 Notes receivable from Wakefern 113,315 111,205 Investment in Wakefern 32,207 32,207 Investments in Real Estate Partnerships 21,721 21,701 Goodwill 24,190 24,190 Other assets 33,437 34,119 Total assets $ 1,004,280 $ 1,003,711 LIABILITIES Current liabilities Operating lease obligations $ 21,559 $ 21,585 Finance lease obligations 1,064 1,037 Notes payable to Wakefern 551 541 Current portion of debt 9,370 9,370 Accounts payable to Wakefern 81,863 83,258 Accounts payable and accrued expenses 34,139 33,177 Accrued wages and benefits 30,268 32,004 Income taxes payable 2,575 297 Total current liabilities 181,389 181,269 Long-term debt Operating lease obligations 235,292 241,216 Finance lease obligations 17,908 18,243 Notes payable to Wakefern 267 405 Long-term debt 46,290 48,621 Total long-term debt 299,757 308,485 Pension liabilities 3,099 3,284 Other liabilities 18,944 18,709 Commitments and contingencies (Note 5) SHAREHOLDERS' EQUITY Preferred stock, no par value: Authorized 10,000 shares, none issued — — Class A common stock, no par value: Authorized 20,000 shares; issued 11,626 shares at October 25, 2025 and 11,627 shares at July 26, 2025 84,529 83,616 Class B common stock, no par value: Authorized 20,000 shares; issued and outstanding 4,125 shares at October 25, 2025 and July 26, 2025 670 670 Retained earnings 432,366 423,690 Accumulated other comprehensive income 3,991 4,453 Less treasury stock, Class A, at cost: 997 shares at October 25, 2025 and July 26, 2025 ( 20,465 ) ( 20,465 ) Total shareholders’ equity 501,091 491,964 Total liabilities and shareholders’ equity $ 1,004,280 $ 1,003,711 See notes to consolidated financial statements. 3 VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) 13 Weeks Ended October 25, 2025 October 26, 2024 Sales $ 582,593 $ 557,697 Cost of sales 417,642 395,819 Gross profit 164,951 161,878 Operating and administrative expense 141,445 137,519 Depreciation and amortization 8,405 8,383 Operating income 15,101 15,976 Interest expense ( 862 ) ( 990 ) Interest income 3,268 3,617 Income before income taxes 17,507 18,603 Income taxes 5,505 5,800 Net income $ 12,002 $ 12,803 Net income per share: Class A common stock: Basic $ 0.90 $ 0.96 Diluted $ 0.81 $ 0.86 Class B common stock: Basic $ 0.59 $ 0.63 Diluted $ 0.59 $ 0.63 See notes to consolidated financial statements. 4 VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) 13 Weeks Ended October 25, 2025 October 26, 2024 Net income $ 12,002 $ 12,803 Other comprehensive income: Unrealized losses on interest rate swaps, net of tax (1) ( 640 ) ( 393 ) Amortization of pension actuarial gain, net of tax (2) ( 27 ) ( 67 ) Pension settlement loss, net of tax (3) 205 — Comprehensive income $ 11,540 $ 12,343 (1) Amount is net of tax of $ 294 and $ 178 for the 13 weeks ended October 25, 2025 and October 26, 2024, respectively. (2) Amount is net of tax of $ 12 and $ 31 for the 13 weeks ended October 25, 2025 and October 26, 2024, respectively. All amounts are reclassified from accumulated other comprehensive income to operating and administrative expense. (3) Amount is net of tax of $ 93 for the 13 weeks ended October 25, 2025. All amounts are reclassified from accumulated other comprehensive income to operating and administrative expense. See notes to consolidated financial statements. 5 VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (In thousands) (Unaudited) 13 Weeks Ended October 25, 2025 and October 26, 2024 Class A Common Stock Class B Common Stock Accumulated Other Comprehensive Income (Loss) Treasury Stock Class A Total Shareholders' Equity Shares Issued Amount Shares Issued Amount Retained Earnings Shares Amount Balance, July 26, 2025 11,627 $ 83,616 4,125 $ 670 $ 423,690 $ 4,453 997 $ ( 20,465 ) $ 491,964 Net income — — — — 12,002 — — — 12,002 Other comprehensive loss, net of tax of $ 213 — — — — — ( 462 ) — — ( 462 ) Dividends — — — — ( 3,326 ) — — — ( 3,326 ) Restricted shares forfeited ( 1 ) ( 18 ) — — — — — — ( 18 ) Share-based compensation expense — 931 — — — — — — 931 Balance, October 25, 2025 11,626 $ 84,529 4,125 $ 670 $ 432,366 $ 3,991 997 $ ( 20,465 ) $ 501,091 Balance, July 27, 2024 11,559 $ 80,186 4,204 $ 683 $ 380,618 $ 6,579 999 $ ( 20,507 ) $ 447,559 Net income — — — — 12,803 — — — 12,803 Other comprehensive loss, net of tax of $ 209 — — — — — ( 460 ) — — ( 460 ) Dividends — — — — ( 3,324 ) — — — ( 3,324 ) Exercise of stock options — 6 — — — — ( 1 ) 16 22 Restricted shares forfeited ( 4 ) ( 44 ) — — — — — — ( 44 ) Share-based compensation expense — 906 — — — — — — 906 Conversion of Class B shares to Class A shares 79 13 ( 79 ) ( 13 ) — — — — — Balance, October 26, 2024 11,634 $ 81,067 4,125 $ 670 $ 390,097 $ 6,119 998 $ ( 20,491 ) $ 457,462 See notes to consolidated financial statements. 6 VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) 13 Weeks Ended October 25, 2025 October 26, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 12,002 $ 12,803 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,905 8,955 Non-cash share-based compensation 913 862 Deferred taxes 309 ( 41 ) Provision to value inventories at LIFO 242 118 Gain on sale of property, equipment and fixtures ( 22 ) — Changes in assets and liabilities: Merchandise inventories ( 2,964 ) ( 2,193 ) Patronage dividend receivable ( 5,460 ) ( 5,564 ) Accounts payable to Wakefern ( 633 ) 516 Accounts payable and accrued expenses 2,462 1,005 Accrued wages and benefits ( 1,736 ) ( 666 ) Income taxes receivable / payable 5,195 5,122 Other assets and liabilities 443 ( 742 ) Net cash provided by operating activities 19,656 20,175 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures ( 8,946 ) ( 11,701 ) Proceeds from the sale of assets 4,494 — Investment in notes receivable from Wakefern ( 2,110 ) ( 2,202 ) Investment in real estate partnership — ( 339 ) Net cash used in investing activities ( 6,562 ) ( 14,242 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of stock options — 21 Principal payments of long-term debt ( 2,778 ) ( 2,711 ) Dividends ( 3,326 ) ( 3,324 ) Net cash used in financing activities ( 6,104 ) ( 6,014 ) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 6,990 ( 81 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 110,699 117,261 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 117,689 $ 117,180 SUPPLEMENTAL DISCLOSURES OF CASH PAYMENTS MADE FOR: Interest $ 862 $ 990 Income taxes $ — $ 769 NONCASH SUPPLEMENTAL DISCLOSURES: Capital expenditures included in accounts payable and accrued expenses $ 7,087 $ 9,290 Lease obligations obtained in exchange for right-of-use assets $ 175 $ — See notes to consolidated financial statements. 7 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In thousands) (Unaudited) 1. BASIS OF PRESENTATION and ACCOUNTING POLICIES In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly the consolidated financial position as of October 25, 2025 and the consolidated statements of operations, comprehensive income and cash flows for the 13 weeks ended October 25, 2025 and October 26, 2024 of Village Super Market, Inc. (“Village” or the “Company”). The significant accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements in the July 26, 2025 Village Super Market, Inc. Annual Report on Form 10-K, which should be read in conjunction with these financial statements. The results of operations for the period ended October 25, 2025 are not necessarily indicative of the results to be expected for the full year. Disaggregated Revenues The following table presents the Company's sales by product categories during each of the periods indicated: 13 Weeks Ended October 25, 2025 October 26, 2024 (4) Amount % Amount % Center Store (1) $ 342,702 58.8 % $ 333,333 59.8 % Fresh (2) 210,984 36.2 198,094 35.5 Pharmacy 26,277 4.5 23,994 4.3 Other (3) 2,630 0.5 2,276 0.4 Total Sales $ 582,593 100.0 % $ 557,697 100.0 % (1) Consists primarily of grocery, dairy, frozen, health and beauty care, general merchandise and liquor. (2) Consists primarily of produce, meat, deli, seafood, bakery, prepared foods and floral. (3) Consists primarily of sales related to other income streams, including service fees related to digital sales, wholesale sales and gift card, lottery and other 3rd party commissions. (4) Fiscal 2025 revenues by category have been reclassified to conform to the Fiscal 2026 current presentation by product category. 2. MERCHANDISE INVENTORIES At October 25, 2025 and July 26, 2025, approximately 64 % of merchandise inventories are valued by the LIFO method while the balance is valued by FIFO. If the FIFO method had been used for the entire inventory, inventories would have been $ 22,624 and $ 22,382 higher than reported at October 25, 2025 and July 26, 2025, respectively. 3. NET INCOME PER SHARE The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54 % greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time. 8 The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54 % greater participation in undistributed earnings than Class B common stock, in accordance with the classes' respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method. Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock. The table below reconciles Net income to Net income available to Class A and Class B shareholders: 13 Weeks Ended October 25, 2025 October 26, 2024 Net income $ 12,002 $ 12,803 Distributed and allocated undistributed Net income to unvested restricted shareholders 385 437 Net income available to Class A and Class B shareholders $ 11,617 $ 12,366 The tables below reconcile the numerators and denominators of basic and diluted Net income per share for all periods presented. 13 Weeks Ended October 25, 2025 Class A Class B Numerator: Net income allocated, basic $ 9,200 $ 2,417 Conversion of Class B to Class A shares 2,417 — Net income allocated, diluted $ 11,617 $ 2,417 Denominator: Weighted average shares outstanding, basic 10,200 4,125 Conversion of Class B to Class A shares 4,125 — Weighted average shares outstanding, diluted 14,325 4,125 13 Weeks Ended October 26, 2024 Class A Class B Numerator: Net income allocated, basic $ 9,737 $ 2,629 Conversion of Class B to Class A shares 2,629 — Net income allocated, diluted $ 12,366 $ 2,629 Denominator: Weighted average shares outstanding, basic 10,106 4,200 Conversion of Class B to Class A shares 4,200 — Weighted average shares outstanding, diluted 14,306 4,200 9 Non-vested restricted Class A shares of 427 and 452 , which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at October 25, 2025 and October 26, 2024, respectively, due to their anti-dilutive effect. 4. RELATED PARTY INFORMATION A description of the Company’s transactions with Wakefern, its principal supplier, and with other related parties is included in the Company’s Annual Report on Form 10-K for the year ended July 26, 2025. At October 25, 2025, the Company held variable rate notes receivable due from Wakefern of $ 37,370 that earn interest at the prime rate plus .50 % and mature on August 15, 2027, $ 38,576 that earn interest at the prime rate plus .50 % and mature on September 28, 2027 and $ 37,369 that earn interest at the SOFR plus 2.25 % and mature on February 15, 2029. Wakefern has the right to prepay these notes at any time. Under certain conditions, the Company can require Wakefern to prepay the notes, although interest earned since inception would be reduced as if it was earned based on overnight money market rates as paid by Wakefern on demand deposits. Included in cash and cash equivalents at October 25, 2025 and July 26, 2025 are $ 99,723 and $ 92,003 , respectively, of demand deposits invested at Wakefern at overnight money market rates. There have been no other significant changes in the Company’s relationships or nature of transactions with related parties during the 13 weeks ended October 25, 2025. 5. COMMITMENTS and CONTINGENCIES On May 2, 2025, the Company filed a Verified Complaint for Declaratory and Injunctive Relief (the “Complaint”) in a matter captioned Village Super Market, Inc., et al. v. Wakefern Food Corp., et al . in the Superior Court of New Jersey, Chancery Division, Middlesex County (the “Chancery Court”). The Company sought to enjoin the acquisition by Wakefern Food Corp. (“Wakefern”) of Morton Williams Supermarkets (the “Acquisition”) on the basis that the acquisition violates Wakefern’s governing documents, which it believes prohibits Wakefern from acquiring and operating a retail chain that competes directly with its members. It also challenged certain actions and inactions by Wakefern in connection with the Acquisition. Subsequently, the Company filed an amended complaint in the Chancery Court on September 19, 2025 (the “Amended Complaint”) to include additional claims concerning Wakefern’s actions against the Company that occurred in August 2025. The Acquisition closed on or about October 1, 2025. The Company is in the process of evaluating its options for alternative relief with respect to Wakefern and the Acquisition. Wakefern and the other defendants have filed a motion to dismiss the Amended Complaint, which motion is pending. Notwithstanding the above, the Amended Complaint is pending resolution on the merits. In addition, there is currently a dispute that arose in August 2025 between the Company and Wakefern related to certain trademark and other agreements between the parties, which dispute has delayed and may further delay the approval of new stores that the Company has planned. To date, this dispute has not significantly impacted its operations or financial performance or significantly delayed the opening of any new stores. However, Wakefern has indicated that it could take additional actions against the Company if the matter in controversy is not resolved. At this time, the Company is unable to determine the probability of the outcome of these matters, or the range of reasonably possible loss, if any. The Company is involved in other litigation incidental to the normal course of business. Company management is of the opinion that the ultimate resolution of these legal proceedings should not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company. 10 6. DEBT Long-term debt consists of: October 25, 2025 July 26, 2025 Secured term loans $ 44,311 $ 45,378 Unsecured term loan 11,349 12,613 Total debt, excluding obligations under leases 55,660 57,991 Less current portion 9,370 9,370 Total long-term debt, excluding obligations under leases $ 46,290 $ 48,621 Credit Facility The Company has a credit facility (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”). The principal purpose of the Credit Facility is to finance general corporate and working capital requirements, Village’s fiscal 2020 acquisition of certain Fairway assets and certain capital expenditures. Among other things, the Credit Facility provides for: • An unsecured revolving line of credit providing a maximum amount available for borrowing of $ 75,000 . Indebtedness under this agreement bears interest at the applicable Secured Overnight Financing Rate ("SOFR") plus 1.25 % and expires on April 30, 2030. • An unsecured $ 25,500 term loan issued on May 12, 2020, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable SOFR plus 1.46 %. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .26 % per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.72 % on the term loan. • A secured $ 50,000 term loan issued on September 1, 2020 repayable in equal monthly installments based on a fifteen-year amortization schedule through September 1, 2035 and bearing interest at the applicable SOFR plus 1.61 %. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .57 % per annum through September 1, 2035, resulting in a fixed effective interest rate of 2.18 % on the term loan. The term loan is secured by real properties of Village Super Market, Inc. and its subsidiaries, including the sites of three Village stores. • A secured $ 7,350 term loan issued on January 28, 2022 repayable in equal monthly installments based on a fifteen-year amortization schedule through January 28, 2037 and bearing interest at the applicable SOFR plus 1.50 %. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at 1.41 % per annum through January 28, 2037, resulting in a fixed effective interest rate of 2.91 % on the term loan. The term loan is secured by the Galloway store shopping center. • An unsecured $ 10,000 term loan issued on September 1, 2022 repayable in equal monthly installments based on a seven-year amortization schedule through September 4, 2029 and bearing interest at the applicable SOFR plus 1.35 %. An interest rate swap for a notional amount equal to the term loan fixes the base SOFR at 2.95 % per annum through September 4, 2029, resulting in a fixed effective interest rate of 4.30 % on the term loan. This loan qualified for an interest rate subsidy program with Wakefern on financing related to certain capital expenditure projects. Net of the subsidy, the Company will pay interest at a fixed effective rate of 2.30 %. • A secured $ 7,125 term loan issued on January 27, 2023 repayable in equal monthly installments based on a fifteen-year amortization schedule through January 27, 2038 and bearing interest at the applicable SOFR plus 1.75 %. An interest rate swap for a notional amount equal to the term loan fixes the base SOFR at 3.59 % per annum through January 27, 2038, resulting in a fixed effective interest rate of 5.34 % on the term loan. The term loan is secured by the Vineland store shopping center. The Credit Facility also provides for up to $ 25,000 of letters of credit ($ 9,021 outstanding at October 25, 2025), which secure obligations for store leases and construction performance guarantees to municipalities. The Credit Facility contains covenants that, among other conditions, require a minimum tangible net worth, a minimum fixed charge coverage ratio and a 11 maximum adjusted debt to EBITDAR ratio. The Company was in compliance with all covenants of the credit agreement at October 25, 2025. As of October 25, 2025, $ 65,979 remained available under the unsecured revolving line of credit. New Markets Tax Credit Financing On December 29, 2017, the Company entered into a financing transaction with Wells Fargo Community Investment Holdings, LLC (“Wells Fargo”) under a qualified New Markets Tax Credit (“NMTC”) program related to the construction of a new store in the Bronx, New York. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. In connection with the financing, the Company loaned $ 4,835 to VSM Investment Fund, LLC (the "Investment Fund") at an interest rate of 1.403 % per year and with a maturity date of December 31, 2044. Wells Fargo contributed $ 2,375 to the Investment Fund and, by virtue of such contribution, is entitled to substantially all of the tax benefits derived from the NMTC. The Investment Fund is a wholly owned subsidiary of Wells Fargo. The loan to the Investment Fund was recorded in Other assets in the consolidated balance sheets. The Investment Fund then contributed the proceeds to a CDE, which, in turn, loaned combined funds of $ 6,563 , net of debt issuance costs, to Village Super Market of NY, LLC, a wholly-owned subsidiary of the Company, at an interest rate of 1.000 % per year with a maturity date of December 31, 2051. The proceeds of the loans from the CDE were used to partially fund the construction of the Bronx store. The Notes payable related to New Markets Tax Credit, net of debt issuance costs, were recorded in long-term debt in the consolidated balance sheets. The NMTC was subject to 100% recapture for a period of seven years, which ended in December 2024. The Company was required to and fulfilled its obligation to be in compliance with various regulations and contractual provisions that applied to the New Markets Tax Credit arrangement for the duration of the seven year recapture period. The transaction included a put/call provision whereby the Company would be obligated or entitled to repurchase Wells Fargo's interest in the Investment Fund for a de minimus amount. In January 2025, Wells Fargo exercised the put option requiring Village to repurchase Wells Fargo's interest in the Investment Fund. This resulted in a non-cash extinguishment of the $ 6,563 loans payable to the CDE and the $ 4,835 loan receivable from the Investment Fund. The $ 1,728 net benefit resulting from the loan extinguishments was recognized ratably over the seven-year compliance period as a reduction in operating and administrative expense. 7. DERIVATIVES AND HEDGING ACTIVITIES The Company is exposed to interest rate risk arising from fluctuations in SOFR related to the Company’s Credit Facility. The Company manages exposure to this risk and the variability of related cash flows primarily by the use of derivative financial instruments, specifically, interest rate swaps. The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of October 25, 2025, the Company had five interest rate swaps with an aggregate initial notional value of $ 99,975 to hedge the variable cash flows associated with variable-rate loans under the Company's Credit Facility. The interest rate swaps were executed for risk management and are not held for trading purposes. The objective of the interest rate swaps is to hedge the variability of cash flows resulting from fluctuations in the reference rate. The swaps replaced the applicable reference rate with fixed interest rates and payments are settled monthly when payments are made on the variable-rate loans. The Company's derivatives qualify and have been designated as cash flow hedges of interest rate risk. The gain or loss on the derivative is recorded in Accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the variable-rate loans. The Company reclassified $ 454 and $ 695 during the 13 weeks ended October 25, 2025 and October 26, 2024, respectively, from Accumulated other comprehensive income to Interest expense. The notional value of the interest rate swaps were $ 55,830 as of October 25, 2025. The fair value of interest rate swaps recorded in Other assets in the consolidated balance sheets is $ 4,737 as of October 25, 2025. 12 8. SEGMENT REPORTING The Company operates a chain of supermarkets in New Jersey, New York, Maryland and Pennsylvania. The Company consists of one operating segment, the retail sale of food and nonfood products. The Company's supermarkets offer similar products to a similar base of customers. Processes for purchasing and distribution, and the regulatory environments they operate in, are all similar and predominantly centralized. The Company does not have any customer representing more than 10% of total revenues. The Company’s Chief Executive Officer and President, together as a group, are the chief operating decision maker ("CODM"). The CODM assesses performance and allocates resources using income before income taxes and net income. The CODM also uses these measures to evaluate and make decisions on budgets, opening, closing, remodeling or replacing stores, negotiations, marketing decisions, and acquisitions. The CODM is provided asset information on a consolidated basis as is reported on the consolidated balance sheets. The following table summarizes sales, significant expenses, income before income taxes and net income on the Company’s single reportable segment: 13 Weeks Ended October 25, 2025 October 26, 2024 Sales: Net Merchandise Sales $ 579,963 $ 555,421 Other Sales (1) 2,630 2,276 Total Sales $ 582,593 $ 557,697 Less: Cost of sales 417,642 395,819 Store labor 53,146 50,933 Other operating and administrative expense (2) 88,299 86,586 Depreciation and amortization 8,405 8,383 Interest expense 862 990 Interest income ( 3,268 ) ( 3,617 ) Income before income taxes 17,507 18,603 Income taxes 5,505 5,800 Net income $ 12,002 $ 12,803 Capital expenditures and payments for other long-lived asset $ 8,946 $ 11,701 (1) See Note 1 for a description of Other sales. (2) Other operating and administrative expense includes fringe payroll and benefit costs, occupancy expenses, utility costs, other facility costs, advertising, other operating expenses, non-store selling, general, and administrative expenses and income from equity method investments. The Company had equity method investments of $ 23,144 and $ 23,124 at October 25, 2025 and July 26, 2025, respectively. 13