Weis Markets’ Q2 profits slide while sales rise

Weis Markets said its profits declined 5.5% in the second quarter, compared with a year ago, despite solid sales gains for the period.

Sales in the 13-week second quarter rose 3.8%, including a 3.5% increase in comp-store sales, to $1.18 billion. On a two-year stacked basis, comp-store sales were up 11.9%. Net income in the quarter totaled $34.27 million, vs. $36.27 million in the second quarter of 2022.

“In the second quarter, we generated solid results due to the hard work and commitment of our associates at every level of our company,” said Jonathan Weis, chairman and CEO of the Sunbury, Pa.-based retailer. “We continue to make strategic investments for long-term profitable growth which benefits our associates, customers, communities, and shareholders. We are keenly aware that our customers are looking for value and savings as they navigate the challenges of inflation, higher interest rates, and reduced government benefits.”

The results marked an improvement from the first quarter, when the company saw slightly lower sales gains and a steeper decline in profits vs. 2022 results. First-quarter net income was down 17.8% on a sales gain of 3.7%, including comp-store gains of 3.1%. Weis said its first-quarter cost of sales rose 6% year-over-year, and its gross profit margin fell to 25% of sales, down 1.6 percentage points.

Related:Weis Markets plans to invest over $160M in growth

Through the first two quarters of this year, net income was down 11.2%, to $60.8 million, on sales growth of 3.8%, to $2.32 billion, compared with the first two quarters of last year. Comp-store sales for the most recent year-to-date period rose 3.3%, and were up 12.2% on a two-year stacked basis.

Weis Markets operates 197 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia.