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Weis Cites CEO Severance in Q3 Loss
SUNBURY, Pa. — Expenses associated with a separation agreement with its recently departed chief executive officer contributed to a 31.9% decline in net earnings during the fiscal third quarter for Weis Markets, the company said.
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SUNBURY, Pa. — Expenses associated with a separation agreement with its recently departed chief executive officer contributed to a 31.9% decline in net earnings during the fiscal third quarter for Weis Markets, the company said.
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Weis said it took a charge of $6.1 million in the quarter for the separation agreement with former CEO David Hepfinger, who resigned abruptly in September. Weis also took a $2.1 million impairment loss for four properties.
For the quarter ended Sept. 28, net earnings totaled $11.7 million. Sales of $661.4 million declined by 1% from the same period last year, while comparable-store sales declined by 2.9%. Weis said “stagnant” sales in certain Center Store categories and significant deflation in fuel costs contributed to the sales reduction.
Read more: Weis Adds Two in Benefits, Construction
Weis said it recently stepped up its promotional and sales building activities and expanded its loyalty marketing programs to spark sales in the fourth quarter.
Year-to-date sales of $2 billion are flat as compared to a year ago, while comparable store sales declined by 2.3%. Net income for the year totaled $56, down 7.3%.
