The sobering phase: Victory's revenues fell by 4% in the second quarter, the sale of the branch in Netanya helped the bottom line

The Victory supermarket chain, controlled by Eyal Ravid, reported this morning (Thursday) a 4% decrease in revenues in the second quarter of the year, following an exceptional growth in the first quarter. Revenues in the second quarter of 2026 totaled 635 million shekels, compared to 660 million shekels in the corresponding quarter last year. One of the reasons for this is seasonality, as the Passover holiday fell in the first quarter this year and contributed to an increase in sales during that period.

In identical stores, meaning branches that have been operating for more than a year, a 5.5% decrease in revenues was recorded. Excluding sales to the Gaza Strip, which totaled 11.3 million shekels in the second quarter, revenue in identical stores fell by 7.4%. In the first quarter, Victory reported a 25% increase in revenues, but after the intervention of the Securities Authority, it clarified that part of the increase stemmed from sales to the Gaza Strip and not from core activity in the branches. Excluding sales to Gaza, the increase in sales in identical stores then totaled 5.95%.

Following the decrease in revenues, Victory recorded a 2% decrease in gross profit, which totaled 157.3 million shekels, but its operating profit rose by 11% to 23.9 million shekels, thanks to income the company recorded from the sale of its branch in Netanya. Bottom line, Victory recorded a net profit of 10.5 million shekels, a growth of about 10% compared to the corresponding quarter last year. Victory's stock has fallen by 18% since the beginning of the year.

Victory operates 69 branches. Since the beginning of the year, the company has opened one branch and closed two others, and it plans to open three new branches during the coming year. The company also noted that since the beginning of the year, it has significantly expanded sales of electronics and home appliances, a field that it says generates a significant shekel margin, and it expects sales volumes in it to rise significantly.

In June, the evidentiary stage began in the price-fixing case in the food market, in which Ravid, the CEO and one of the owners of the chain, is also accused, with one of the charges filed against him claiming that as a retailer, he pressured suppliers to first raise prices in competing chains before he would approve their new price list at his own.