Weis’ Q2 Net Income Up, Sales Down

Weis Markets Inc. has posted a 4.2 percent increase in its second-quarter net income versus the year-ago period, noting that its earnings per share grew 4 cents to 90 cents during the quarter.

During the 13-week period ending June 29, Sunbury, Pa.-based Weis generated $24.2 million in net income compared to $23.2 million last year, while operating income rose 6.5 percent to $37.6 million. The grocer’s second-quarter sales dipped 2.2 percent to $662.1 million, from the $677.1 million reported in 2012, however, and second-quarter comparable store sales fell 4.8 percent.

“We attribute our net income and operating income increases to increased store-level productivity and improved distribution efficiencies which helped us maintain our in-stock position and the overall quality of our fresh departments,” explained David J. Hepfinger, president and CEO of Weis. “While our market share remains stable, our sales were impacted by the continuing trend of cautious consumer spending and a challenging comparison to the same period in 2012, when we opened three new stores and were aggressively promoting a new replacement unit. As a result, we fell short of our sales goals. We are encouraged by some recent sales trends and expect to improve our sales results in the coming quarters.”

For the 26-week period ending June 29, Weis’ net income grew 2.5 percent to $44.3 million, while earnings per share edged up 4 cents to $1.65 per share, compared with the year-ago period. Year-to-date operating income rose 4.3 percent to $68.5 million in 2013 from 2012. During the same period, the company’s sales came to $1.3 billion, a 0.5 percent increase, while comparable store sales declined 2 percent.

Weis operates 164 stores in Pennsylvania, Maryland, New Jersey, New York and West Virginia