Weis Markets Tabs Q1 Sales Increases
SUNBURY, Pa. - Buoyed by successful sales-building strategies and aggressive promotional pricing, Weis Markets' first quarter sales increased 4.4 percent to $571.8 million for the 13-week period ending March 31, 2007 vs. the same year-ago period while the chain's same store sales increased 4.4 percent.
The company's first quarter net income declined 10.3 percent to $13.4 million and its basic and diluted earnings per share declined $.05 to $.50 per share compared to the same period a year ago. The company said earnings were negatively impacted by a decline in its gross profit rate due to higher inventory losses and its aggressive promotional activity in response to competitive openings. Weis Market's earnings were also affected significantly by increased labor costs.
To better manage its labor costs and reduce its inventory losses, the chain said it is implementing programs to improve operational efficiencies, productivity and execution.
At the annual shareholders meeting earlier this month, Weis Markets' vice chairman Jonathan H. Weis said his company's plans to invest $72.5 million in its expansion and growth. Two-thirds of the budget is targeted for the construction of two superstores, including one replacement, 10 additions, and nine remodels.
This month, Weis Markets celebrates its 95th year in operation. The chain operates 156 stores in Pennsylvania, Maryland, New York, New Jersey and
West Virginia.
The company's first quarter net income declined 10.3 percent to $13.4 million and its basic and diluted earnings per share declined $.05 to $.50 per share compared to the same period a year ago. The company said earnings were negatively impacted by a decline in its gross profit rate due to higher inventory losses and its aggressive promotional activity in response to competitive openings. Weis Market's earnings were also affected significantly by increased labor costs.
To better manage its labor costs and reduce its inventory losses, the chain said it is implementing programs to improve operational efficiencies, productivity and execution.
At the annual shareholders meeting earlier this month, Weis Markets' vice chairman Jonathan H. Weis said his company's plans to invest $72.5 million in its expansion and growth. Two-thirds of the budget is targeted for the construction of two superstores, including one replacement, 10 additions, and nine remodels.
This month, Weis Markets celebrates its 95th year in operation. The chain operates 156 stores in Pennsylvania, Maryland, New York, New Jersey and
West Virginia.