Advertisement
11/01/2016

Weis Markets Logs Double-digit Net Decline

Weis Markets Inc. has posted a third-quarter sales increase of 4.4 percent to $743.0 million, compared with $712.0 million for the same period in 2015. The grocer’s comparable-store sales for the 13-week period ended Sept. 24 rose 2.7 percent.

Also during the third quarter, however, Weis Markets’ net income dropped 16.9 percent to $10.6 million, from $12.8 million in the year-ago period, while the company’s earnings per share was 40 cents, versus 48 cents per share last year.

According to Weis Markets, the decline in its third quarter net income was due mainly to $4.4 million in net costs related to the acquisition, conversion and reopening of five former Mars Super Markets in the Baltimore area and 10 former Food Lion stores in Maryland. During the fourth quarter, the company will wrap up the conversion of 28 additional former Food Lion locations in Maryland, Delaware and Virginia.

“In the third quarter, we invested in driving sales during a time of record growth for our company, despite significant deflation in key categories, notably meat and dairy,” said Jonathan Weis, chairman and CEO of Sunbury, Pa.-based Weis Markets.

For the 39-week period ended Sept. 24, the grocer’s sales grew 3.2 percent to $2.2 billion, compared with $2.1 billion for the same period in 2015, while year-to-date comps sales edged up 2.7 percent. Year-to-date income rose 7.6 percent to $46.0 million, versus $42.8 million last year. Earnings per share for the same period to $1.71, compared with $1.59 in 2015.

Weis Markets operates 199 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, Virginia and West Virginia.