Weis Markets upholds sales momentum in third quarter

Mid-Atlantic grocer Weis Markets got off to a strong start in the fiscal 2022 second half with robust third-quarter net and comparable sales gains.

For the quarter ended Sept. 24, net sales totaled $1.15 billion, up 8.2% from $1.06 billion a year earlier, Sunbury, Pa.-based Weis reported. Sequentially, the supermarket chain maintained the growth pace of 8.4% in the 2022 second quarter and, compared with a year ago, topped the 6.1% increase in the 2021 third quarter.

Weis noted in a 10-Q filing with the Securities and Exchange Commission that the Q3 2022 net sales gain, in part, reflects retail price inflation in grocery, fuel and fresh product categories.

Comp-store sales for the third quarter advanced 7.9% year over year, compared with an 8.4% increase in Q2 and a 4.6% uptick in Q3 2021, and were up 12.5% on a two-year stack, following a 14.8% gain for the same period in 2020, according to Weis. Excluding fuel, Q3 2022 same-store sales rose by 6.7% from a year ago and by 9.9% over two years.

For the year to date, net sales climbed 8.7% to $3.39 billion from $3.12 billion in the prior-year period. Same-store sales for the 39 weeks grew 8.7% year over year and were up 8.5% over two years, following a 17.3% increase for the same period in 2020.

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“We remain grateful to our associates who are helping us work through the challenges of an inflationary environment to achieve our elevated current year expectations,” Chairman, President and CEO Jonathan Weis said in a statement. “As customers look for more ways to save, the Weis Gas Rewards Program, Weis Quality private-label products, and our ‘Low, Low Price’ programs offer strong value. We will build on our value proposition in the fourth quarter, when customers can earn a free turkey or ham for their holiday celebrations based on their purchases.”

In its 10-Q, Weis Markets said it has continued to expand e-commerce service. Through the end of the third quarter, the grocer offered Weis 2 Go Online curbside pickup at 188 stores and home delivery via Shipt at 176 locations. And since a September 2021 launch,  DoorDash on-demand delivery has expanded to 189 stores. The company reported e-commerce sales of $51.3 million for the first 39 weeks of 2022, down 10.3% from $57.2 million in the prior-year period but up 3.3% from the same period in 2020.

At the bottom line, Weis Markets posted 2022 third-quarter net earnings of $28.7 million, or $1.07 per share, compared with $28.5 million, or $1.06 per share, a year ago. Year-to-date net income totaled $96.3 million, or $3.58 per share, versus $86.2 million, or $3.21 per share, in the year-ago period.

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Weis expects capital expenditures of $110 million for 2022, according the the 10-Q filing. The program includes the construction of new superstores, the expansion and remodeling of current stores, the acquisition of sites for future expansion, new technology, and distribution facility and transportation fleet upgrades. However, the company said in the filing that it’s experiencing limited availability of raw materials and equipment to complete remodels, supply chain and IT upgrades, and smaller store improvement projects.

Currently, Weis Markets operates 197 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia, the same number as a year ago.