Sales Up, Income Down for Weis Markets During Q2
In a performance that tracks with recent industry trends, Weis Markets, Inc. wrapped up its second quarter with higher sales and a slight downturn in income and earnings. The Mid-Atlantic chain posted net sales of $1.18 billion, up 3.8% from the second quarter of 2022. Sales comps were up a similar 3.5% and came in nearly 12% higher than 2021.
During the period ending July 1, net income declined to 5.5% on a year-over-year (YoY) basis to $34.27 million. Earnings per share (EPS) dipped slightly in that time frame, too, moving from $1.35 per share to $1.27 per share.
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Widening the lens, those quarterly results were consistent for the year to date. Weis’s net sales reached $2.32 billion at the 26-week mark for a 3.8% YoY increase and its comps were likewise up for the first half of fiscal 2023, climbing 3.3%. The grocer’s net income on a year-to-date basis slid 11.2% and EPS edged a bit lower, from $2.52 per share to $2.23 per share.
In an environment of still-elevated prices, tighter competition and consumers’ ongoing penchant for cooking at home, the latest financial results reflect a mix of resilience and caution, according to Chairman and CEO Jonathan H. Weis. "In the second quarter, we generated solid results due to the hard work and commitment of our associates at every level of our company,” he declared. "We continue to make strategic investments for long-term profitable growth which benefits our associates, customers, communities, and shareholders. We are keenly aware that our customers are looking for value and savings as they navigate the challenges of inflation, higher interest rates, and reduced government benefits."
To that point, Weis Markets took steps during the quarter to deliver value to shoppers. Earlier this summer, the retailer expanded its Low, Low Price program to include more than 700 popular breakfast items. Prices were cut across the breakfast category for items like mid-sized cereals, pancake mixes, instant oatmeal and granola bars.
Also during the second quarter, Weis completed a remodel of a location in Duryea, Pa. The refreshed store features a new beer-wine café, updated deli and prepared foods area, expanded produce section and a revamped bakery, among other improvements. Meanwhile, the retailer is planning to open another store in Middletown, Del., in 2025.
Sunbury, Pa.-based Weis Markets operates 197 stores in Pennsylvania, Delaware, Maryland, New Jersey, New York, Virginia and West Virginia. The company is No. 60 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named the company one of its 2023 Top Regionals.
