Victory clarifies revenue jump was driven by sales to Gaza

Victory, the Israeli supermarket chain controlled and run by Eyal Ravid, issued a supplementary financial update for the first quarter of 2026 after a demand from the Israel Securities Authority. The company said that most of the sharp increase in its revenue came from sales to the Gaza Strip, rather than from ordinary business growth.

According to the revised report, Victory sold goods worth about 99 million shekels to Gaza in the quarter. Total sales reached 755.8 million shekels, an increase of about 152 million shekels compared with the same quarter last year, and roughly two-thirds of that growth came from Gaza-related sales. Victory has been operating since January 2026 as an authorized supplier to the Strip on behalf of the State of Israel, but said that in the first quarter it served in that role for only about one month and not continuously.

The company said same-store sales, which had initially been reported as up 23%, were actually up just 5.95% once Gaza sales were excluded. Revenue per square meter was 10,100 shekels in the quarter, but only 8,700 shekels excluding Gaza, compared with 8,200 shekels in the corresponding quarter of 2025. Gross margin fell from 23.9% to 23.1%, which the company attributed to the lower profitability of sales to Gaza.

Victory also warned there is no certainty that sales to Gaza will continue, and if they do, the volumes are unknown.