Weis Markets’ Q1 Income Takes a Hit

Mid-Atlantic grocer's latest financial results include 3% comparable-store sales increase

5/9/2023

Higher product, supply chain and operating costs had a significant impact on Weis' income results compared with last year.

The first quarter was a mixed bag for Weis Markets Inc. For the 13-week period ended April 1, the Mid-Atlantic food retailer reported net sales of $1.14 billion, compared with $1.10 billion for the 13-week first quarter ended March 26, 2022, an increase of 3.7%. Also, Q1 comparable-store sales grew 3.1% on an individual year-over-year basis and soared 12.5% on a two-year stacked basis.

However, income from operations dropped approximately 21% in Q1. Net income also decreased almost 18%, totaling $25.81 million, compared with $31.39 million in 2022.

“Our first-quarter sales and income results are in line with our expectations in an inflationary environment,” said Weis Markets Inc. Chairman, President and CEO Jonathan H. Weis. “Higher product, supply chain and operating costs had a significant impact on our income results compared to last year. We are grateful to our associates who helped us navigate these challenges and serve our customers. In addition, record inflation continues to be a major challenge for our customers. In response, we expanded our Low, Low Price program which offers strong everyday savings and values on more than 9,000 products.”

Q1 earnings per share totaled 96 cents, compared with $1.17 per share in 2022.

On April 27, the Weis board of directors declared a quarterly cash dividend of 34 cents per share to shareholders of record as of May 8.

At its recent shareholder meeting, Weis unveiled big plans to invest more than $160 million toward its growth in 2023, including new stores, remodels, information technology upgrades and store improvements.

Extensive remodels include stores in Thurmont and Hagerstown, Md. The Thurmont location remodel will begin this summer, with Hagerstown upgrades said to "soon begin." New stores include a 64,000-square-foot supermarket in Middletown, Del., slated to open 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. 61 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America. PG also named the company one of its 2023 Top Regionals.