SUNBURY, Pa. — Expenses associated with a separation agreement with its recently departed chief executive officer contributed to a 31.9% decline in net earnings during the fiscal third quarter for Weis Markets, the company said.
Weis said it took a charge of $6.1 million in the quarter for the separation agreement with former CEO David Hepfinger, who resigned abruptly in September. Weis also took a $2.1 million impairment loss for four properties.
For the quarter ended Sept. 28, net earnings totaled $11.7 million. Sales of $661.4 million declined by 1% from the same period last year, while comparable-store sales declined by 2.9%. Weis said “stagnant” sales in certain Center Store categories and significant deflation in fuel costs contributed to the sales reduction.
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Weis said it recently stepped up its promotional and sales building activities and expanded its loyalty marketing programs to spark sales in the fourth quarter.
Year-to-date sales of $2 billion are flat as compared to a year ago, while comparable store sales declined by 2.3%. Net income for the year totaled $56, down 7.3%.
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