Improved efficiencies and purchasing drove a strong double-digit jump in second-quarter earnings at Weis Markets Inc., despite flat same-store sales.
Management described the chain’s customers as “extremely cautious” in their spending. Such key perishables departments as meat and produce, however, continue to perform well, executives said.
SUNBURY, Pa. — Weis Markets Inc. recorded a 34.9% increase in net income to $20.5 million, or 76 cents per share, for the 13-week quarter ended June 26.
Weis Markets Inc. recorded a 34.9% increase in net income to $20.5 million, or 76 cents per share, for the 13-week quarter ended June 26.
Net sales grew 6.2% to $653.7 million, but comparable-store sales remained unchanged year-over-year. Pretax income soared 40.7% to $32.8 million.
Net earnings for the half increased 19.4% to $37.9 million, or $1.41 per share, while the chain’s top line gained 7.9% to $1.3 billion.
"It is clear the economy continues to be a major concern for our customers, who continue to be extremely cautious in their spending," said David Hepfinger, president and chief executive officer. "In this environment, we have maintained our sales base and produced our seventh consecutive quarter of earnings increases. We attribute our results to improved efficiencies and productivity at store and distribution levels. We have also benefited from improvements in the procurement area and our perishable departments, notably meat and produce, continue to perform well."
In related news, Weis’ board of directors declared a quarterly dividend of 29 cents per share to shareholders of record as of July 19.