Weis Markets Reports Second Quarter Results

SUNBURY, Pa., July 26, 2016

For the thirteen week period ended June 25, 2016, the Company's net income decreased 8.3 percent to $15.3 million while earnings per share totaled $0.57 per share compared to $0.62 per share for the same period in 2015.   Net income for the quarter was negatively impacted by the increase in base wages in the third quarter of 2015 and the Easter calendar shift to the first quarter in 2016. 

As a percentage of sales, 2016 second quarter store labor costs increased 0.3% and 0.2% year-to-date compared to the same periods in 2015 due to the increase in its base wages.  The increase in its base hourly rate to $9 per hour and related wage compression increased costs by an estimated $2.8 million in the second quarter and $5.5 million year-to-date.  Increased employee related expenses were partially offset by savings realized from a store labor efficiency project.

Year-to-Date

For the 26 week period ending June 25, 2016, the Company's sales increased 2.6 percent to $1.5 billion while comparable store sales increased 2.7 percent compared to the same period in 2015. Year-to-date operating income increased 21.8 percent to $55.3 million while net income increased 18.1 percent to $35.4 million. Earnings per share increased 17.9 percent to $1.32 per share.

"Wage increase and Easter calendar shift aside, we continue to post solid results which we attribute to our long-term price investments, increasingly efficient logistics and improved customer experience." said Jonathan H. Weis, Weis Markets Chairman, President and CEO. "During the period, we saw a strong increase in customer traffic which helped generate significant sales increases in produce, deli/food service and pharmacy."

Also during the period, Weis Markets announced plans to acquire 38 Food Lion stores in Maryland, Virginia and Delaware and five Mars Super Markets in Baltimore. The conversion of these stores to Weis Markets branded stores will begin in the third quarter of 2016.