Weis Markets Reports $1.2 Billion Revenue with 1.6% Increase, Net Income Declines 11.6%

Weis Markets, Inc. reported a total revenue of $1.2 billion for the thirteen weeks ended March 29, 2025, reflecting a 1.6% increase from $1.18 billion in the same period last year. The company's net income for the quarter was $20.5 million, down 11.6% from $23.2 million in the prior year. This decline in profitability was attributed to increased operating expenses and a decrease in investment income. The basic and diluted earnings per share were $0.76, compared to $0.86 in the previous year.

The company's cost of sales rose to $901.3 million, up from $887.2 million, while gross profit increased slightly to $299.5 million, maintaining a gross profit margin of 25%. Operating expenses also saw an increase, totaling $276.5 million, which represented 23.1% of net sales, compared to 22.7% in the prior year. The increase in operating expenses was primarily driven by higher employee costs and depreciation. The company noted that comparable store sales increased by 0.9% year-over-year, with a 2.1% increase when adjusted for the Easter holiday shift.

In terms of strategic developments, Weis Markets expanded its footprint by acquiring the former Saylor’s Market store in Newville, Pennsylvania, for $7.5 million. This acquisition is expected to enhance the company's presence in the Cumberland County region, contributing $2.9 million to sales in the current quarter. The company continues to focus on enhancing customer convenience through initiatives like the "Weis 2 Go Online" service, which is available at 191 locations, allowing customers to order online for delivery or pickup.

Operationally, Weis Markets employed approximately 22,000 individuals across its 198 retail stores located in Pennsylvania and six surrounding states. The company self-distributes about 51% of its products and operates three manufacturing facilities. The company’s cash and cash equivalents decreased to $167.9 million from $190.3 million at the end of the previous fiscal year, while total assets decreased to $2.08 billion from $2.11 billion. The company’s total liabilities also decreased, indicating a strengthening balance sheet.

Looking ahead, Weis Markets anticipates continued challenges from inflationary pressures in the food retail industry, which may impact product costs. However, management remains optimistic about long-term sales growth despite competitive pressures. The company plans to fund its capital expenditure program, which includes store expansions and technology upgrades, through cash flows from operations and its revolving credit facility, which currently has $14.5 million available. The Board of Directors has declared a quarterly dividend of $0.34 per share, reflecting the company's commitment to returning value to shareholders.