Weis Lauds Elevated Q3 Financial Performance
While net sales for Weis Markets Inc., totaled $1.1 billion for the 13-week period ended Sept. 25 — compared with $1.0 billion for the same period in 2020, up 6.1% — its third-quarter comparable-store sales increased 4.6% on an individual year-over-year basis and increased 19.4% on a two-year stacked basis.
"We continued to generate strong results in the third quarter," said Weis Markets Chairman, President and CEO Jonathan H. Weis. "Our hardworking and dedicated associates are the key to our success. They continue to help us meet the challenges of a pandemic-impacted marketplace, including a tight labor market, supply chain disruptions impacting product availability, and product cost inflation resulting in some consumer resistance. Their success is our success."
As a thank-you for their ongoing efforts to serve customers, Jonathan Weis said that most associates will receive an appreciation bonus in January. This is in addition to the company’s fourth-quarter holiday bonus.
Supported by its elevated financial performance and cash position on a two-year stacked basis, the Mid-Atlantic food retailer increased its 2021 capital expenditures outlook to $150 million, up 11.1% from the $135 million budget revealed at the company's annual shareholder meeting in April. Along with continued investments in associates and customers, the accelerated reinvestments in hundreds of retail store improvement projects and supply chain network capabilities will further enable the company's long-term positive momentum.
To help with its supply chain network, Weis promoted Terry Wallace to the role of VP of supply chain and logistics in May. In this position, Wallace oversees all of the company’s supply chain and distribution activities at its 1.3 million-square-foot distribution center in Milton, Pa.
In addition to store remodels, Weis opened two new stores in Pennsylvania in May to expand its presence in the Mid-Atlantic region. The stores are located in Bethlehem and Lower Macungie.
In operations, Weis made improvements in reducing refrigerant. The retailer recently reported that more than 90% of its stores no longer use ozone-depleting refrigerants, and that its distribution, manufacturing and support facilities have also transitioned away from the use of these refrigerants.
Meanwhile, Weis also made inroads into its e-commerce offering in the third quarter. In September, the food retailer partnered with DoorDash, to offer on-demand grocery delivery from more than 170 Weis Markets stores across its seven-state market area. Average delivery is in an hour.
Other notable takeaways from the company's third-quarter earnings report include a net income total of $28.5 million, compared with $31.3 million in 2020, down 9.0%. Third-quarter earnings per share totaled $1.06, compared with a $1.16 per share for the same period in 2020.
When looking at Weis’ year-to-date earnings, net sales totaled $3.1 billion, increasing 1.0% for the 39-week period ending Sept. 25, 2021, compared with the same period in 2020. Year-to-date comps decreased a relatively flat 0.1% on an individual year-over-year basis, and increased 17.2% on a two-year stacked basis.
The company's year-to-date net income totaled $86.2 million, compared with $99.5 million in 2020, down 13.3%. Year-to-date earnings per share totaled $3.21, compared with $3.70 for the same period in 2020.
Sunbury, Pa.-based Weis Markets operates more 190 stores in Pennsylvania, Delaware, Maryland, New Jersey, New York, Virginia and West Virginia. The company is No. 60 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in North America.
