Weis Markets Posts Strong Q3 Earnings Increase

Weis Markets, Inc. posted a 92 percent net income increase during the 13-week period ended Sept. 26, 2009, of $15.6 million vs. the year-ago period, alongside a third-quarter 3.2 percent sales increase of $623 million over last year.

The Sunbury, Pa.-based regional grocery’s third-quarter same-store sales increased 1.1 percent, while its earnings per share during that period went up 28 cents to 58 cents per share, nearly double what the company posted in the year-ago period. Further, Weis’ third-quarter income from operations increased 123 percent to $24.2 million, while its gross profit rate rose 1.6 percent.

“At a time of changing customer spending patterns and during a period of considerable deflation in key categories, we continue to make significant progress in our core markets, due to improved operating performance throughout our company,” said president and CEO David J. Hepfinger. “We are encouraged with our results and hope to build on them in the fourth quarter.”

In the third quarter, the company completed its acquisition of 11 stores in the Binghamton, N.Y. area and reopened these units on Aug. 25, which contributed to a majority of the sales increase during the quarter.

The company’s year-to-date net income increased 57.7 percent to $47.3 million vs. the same period a year ago, while basic and diluted earnings per share increased 65 cents per share to $1.76, its year-to-date income from operations grew 72.8 percent to $72.2 million, and its gross profit rate increased 1.2 percent. The retailer’s year-to-date sales also increased 2.3 percent to $1.8 billion, while comparable sales were up 1.7 percent.

Weis Markets operates 165 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia.
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