Weis Attributes Income Drop to Store Acquisitions
Weis Markets has posted a third-quarter sales increase of 4.4 percent, to $743 million, compared with $712 million for the same period in 2015. The grocer’s comparable-store sales for the 13-week period ended Sept. 24 rose 2.7 percent.
Also during the third quarter, however, Weis Markets’ net income dropped 16.9 percent to $10.6 million, from $12.8 million in the year-ago period, while the company’s earnings per share was 40 cents, versus 48 cents per share last year.
According to company executives, the decline in its third quarter net income was due mainly to $4.4 million in net costs related to the acquisition, conversion and reopening of five former Mars Super Markets in the Baltimore area and 10 former Food Lion stores in Maryland. During the fourth quarter, the company will wrap up the conversion of 28 additional former Food Lion locations in Maryland, Delaware and Virginia.