Weis Markets Reports 2Q Earnings Increase
Weis Markets Inc. today reported a 12.1 percent increase in its second quarter net income.
During the 13-week period ending June 30, the company generated $23.2 million in net income while its earnings per share increased 11.7 percent to $.86 per share, compared to $.77 per share for the same period in 2011. Second quarter operating income increased 11.4 percent to $35.3 million.
Second quarter sales increased 0.1 percent to $677.1 million while comparable store sales increased 0.4 percent.
“We are operating in a stagnant sales environment resulting from the poor economy and intense competition. In the second quarter, we continued to improve efficiencies and productivity at store level and in our supply chain while enhancing quality of our customer shopping experience in terms of our in-stock position and overall freshness,” said Weis Markets’ President and CEO David J. Hepfinger. “We also continued to invest in our growth by acquiring and reopening three units in the Delaware Valley and extensively remodeling six units.”
The company also attributed its net income and operating income increases to disciplined promotions and marketing and a decrease in depreciation expenses when it changed depreciation methods from accelerated to straight-line.
Year to date
For the 26-week period ending June 30, the company’s net income increased 10.0 percent to $43.2 million while earnings per share increased 10.3 percent to $1.61 compared to $1.46 in 2011. During the same period the company’s operating income increased 9.7 percent to $65.7 million. Year-to-date sales increased 0.2 percent to $1.3 billion while comparable store sales increased 0.7 percent.
Weis Markets operates 162 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia.