Weis Markets on Monday said net income declined by 16.9% in the fiscal third quarter as the retailer absorbed costs associated with the acquisitions of Food Lion and Mars Super Market stores, as well as sales-driving initiatives to offset deflation.
Sales of $743 million in the quarter increased by 4.4%, and comparable-store sales were up by 2.7%. The 13-week period ended Sept. 24. Net income of $10.6 million was down from $12.8 million in the same period last year, primarily due to $4.4 million in net costs associated with the acquisition, conversion and reopening of five former Mars stores and 10 former Food Lion stores the Sunbury, Pa.-based retailer acquired over the summer.
Weis acquired 28 Food Lion stores overall and is expected to complete their conversions in the current quarter.
"In the third quarter, we invested in driving sales during a time of record growth for our company despite significant deflation in key categories, notably meat and dairy," Jonathan Weis, Weis Markets' chairman and CEO said in a statement.
For the 39 week period Weis' sales increased 3.2% to $2.2 billion compared to $2.1 billion for the same period in 2015 while year-to-date comparable store sales increased 2.7%. Year-to-date income increased 7.6% to $46.0 million.
