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Earnings, sales at Weis Markets climb in first quarter
Lower income taxes give a lift to the bottom line
Russell Redman
May 9, 2018
2 Min Read
An income tax benefit helped lift net earnings at Weis Markets Inc. for the first quarter.
For the quarter ended March 31, the Sunbury, Pa.-based supermarket chain said net income rose 36.8% to $16.2 million, or 60 cents per share, from $11.8 million, or 44 cents per share, a year earlier.
The income tax provision for the quarter decreased 33.8% to $6.1 million from $9.2 million a year ago. Pretax, net earnings were $22.3 million, up 5.9% from $21.1 million in the prior-year period.
Operating income rose 12.8% year over year to $22.8 million in the first quarter.
"Our operating income was positively impacted by store improvements in overall efficiency levels, particularly with inventory management, which resulted in an improved store gross profit rate and our 16th consecutive quarter of comparable-store sales increases," chairman and chief executive officer Jonathan Weis said in a statement.
"Our operating income also benefited from store labor efficiencies, in which multiple winter weather events were a contributing factor, and improvements to some of our key marketing and advertising programs,” he added. “We look to build on our momentum in the coming months."
On the revenue side, first-quarter sales at Weis Markets totaled $876.1 million, up 2.8% from $852.2 million a year ago.
Weis Markets said sales benefited from the Easter calendar shift. This year, the lead-up holiday sales push came in the last week of the first quarter, and the slow post-Easter sales week was in the second quarter. Last year, both the Easter and post-Easter weeks fell in the second quarter.
The retailer reported a comp-store sales gain of 1.5%, adjusted for the holiday shift.
For fiscal 2018, Weis Markets plans two new stores — the first of which opened last month in Nottingham, Md., — and aims to complete 20 remodels and add four pharmacies and one fuel center.
The company has expanded the Weis 2 Go online grocery program to 25 more stores, with 79 locations now offering the service, and added a curbside pickup option.
Overall, Weis Markets operates 206 stores in Pennsylvania, Maryland, New Jersey, New York, Delaware, Virginia and West Virginia.
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