Weis Markets' Third Quarter Results
Sanbury, PA
Weis Markets Inc., has reported its third quarter net income, increasing 1.2% to $17.2 million while its earnings per share increased 1.6% to $0.64 per share compared to the same period in 2011.
During the thirteen-week period ending September 29th, the company's operating income increased 1.3% to $26.5 million. For the period, the company's sales decreased 1.5% to $668.4 million while comparable stores decreased 1.7%.
Weis Markets stated its net income and operating income increases were the result of its continuing focus on promotions and marketing, increased store-level productivity, improved operational and supply chain efficiencies and a decrease in depreciation expenses due to its change of depreciation methods from accelerated to straight-line.
While the company's overall market share remained stable, it attributed its sales results to an unfavorable year over year comparison. In September 2011, a majority of its stores located in Pennsylvania and New York counties were impacted by flooding due to Hurricanes Irene and Lee, resulting in emergency sales surges throughout these areas.
Compared to the same period in 2011, the company's third quarter sales were also impacted by a $4.5 million decline in pharmacy sales due to the conversion of brand drugs to generic. As part of its strategy to offset this decline, the Company has expanded its immunization programs.
For the 39 week period ending September 29, the Company's sales totaled $2.01 billion, down 0.4% while comparable store sales decreased 0.2%. For the same period, the Company's net income increased 7.3% to $60.4 million while year to date earnings per share increased 7.7% to $2.25 per share. Year to date operating income increased 7.1% to $92.2 million.
