Weis Markets Q2 Sales Come In Flat
Weis Markets Inc., a prominent regional grocer, has announced its financial outcomes for the second quarter ending June 29. The firm reported net sales of $1.18 billion, reflecting a modest increase of just 0.2% from the previous year. This growth, however, was notably hindered by a $14 million decline—about 1.2%—due to the Easter holiday shifting to the first quarter of 2024 instead of falling in the second quarter of 2023.
In terms of comparable-store performance, Weis Markets recorded a 0.5% increase year-over-year and a more encouraging 4.0% rise over a two-year stacked basis. However, net income for Q2 saw a significant drop, falling to $26.26 million from $34.27 million in 2023, marking a 23.4% decrease. Earnings per share dropped to 98 cents, down from $1.27 last year.
Jonathan H. Weis, Chairman and CEO, remarked that despite the Easter holiday impact and a challenging market marked by consumer caution, the results align with their forecasts. The company has enhanced its pricing strategies, cutting prices on 600 key dairy products under its Low, Low Price program. Furthermore, Weis Markets reinforced its customer retention efforts through the Weis Rewards program, boosting savings on fuel and retail products.
The quarter also saw expansions in fuel services with the opening of a new Gas N’ Go Fuel Center in Lock Haven, Pa. Additionally, several store remodels took place, enhancing aesthetics and variety in locations like Hagerstown, Md., and Lebanon, Pa.
For the year-to-date results, net sales rose to $2.36 billion, marking a 1.6% increase from the same point in 2023. However, year-to-date net income fell by 17.7% to $49.42 million. Weis Markets declared a quarterly cash dividend of 34 cents per share, further demonstrating its commitment to shareholder returns amidst fluctuating sales.
Operating 196 stores across multiple states, Weis Markets maintains its position as a top food retailer, currently ranking No. 60 on Progressive Grocer’s coveted PG 100 list. As the company navigates these competitive waters, its strategic focus on pricing and customer loyalty indicates a forward-thinking approach amid current market challenges.
