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Weis Markets cycles year-ago pandemic gains in Q1

Net and same-store sales inch up while earnings decline

Russell Redman

May 4, 2021

3 Min Read
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Weis Markets recorded increases of 2.1% net sales and 1.4% in comparable-store sales in the fiscal 2021 first quarter after notching double-digit gains a year earlier.Weis Markets

Facing tough year-over-year comparisons from early pandemic panic-buying, Weis Markets saw sales growth fall off and net earnings decline in its fiscal 2021 first quarter.

Net sales for the quarter ended March 27 totaled just over $1 billion, up 2.1% from $985.8 million a year earlier, Weis Markets reported yesterday after the market close. Comparable-store sales edged up 1.4% for the period.

At the bottom line, fiscal 2021 net income fell 9.1% to $24.3 million, or 90 cents per share, from $26.7 million, or 99 cents per share, a year ago.

In the fiscal 2020 first quarter, which ended March 28, 2020, Sunbury, Pa.-based Weis Markets had added more than $100 million in net sales, which jumped 12.4% to $985.8 million from $876.7 million in the fiscal 2019 quarter. Same-store sales rose even higher, climbing 12.8%. Net earnings surged 86% to $26.7 million, or 99 cents per share, from $14.3 million, or 53 cents per share, in the prior-year period.

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CEO Jonathan Weis said that, given the 2020 Q1's 'record surge in demand for food retailers,' pre-pandemic levels in Q1 2019 provide a 'more appropriate baseline for comparison' with Q1 2021.

The World Health Organization (WHO) declared COVID-19 a global pandemic on March 11, and the United States followed two days later by declaring coronavirus a national emergency on March 13. U.S. shoppers, though, had already begun flocking to supermarkets in the latter part of February to stockpile groceries and other essential supplies such as sanitizers, cleaning products, face masks and disposable gloves as reports of virus cases became more widespread.

Related:Weis Markets to invest $135M in capital expenditures

“The World Health Organization declared the novel coronavirus (COVID-19) a pandemic on March 11, 2020, which resulted in restaurant, business and school closings while other companies transitioned to working remotely. The result was a record surge in demand for food retailers,” Weis Markets Chairman, President and CEO Jonathan Weis said in a statement.

“Our first-quarter 2021 results remained significantly elevated in absolute terms and were in line with expectations, with sales up 14.8% and net income up 69.6% compared to the pre-pandemic levels in first-quarter 2019, which is a more appropriate baseline for comparison,” he noted.

Overall for the 52-week fiscal 2020 period, ended Dec. 26, 2020, Weis Markets reported net sales of $4.11 billion, up 16.1% from $3.54 billion in fiscal 2019, when sales had risen 8.4% year over year. The 2020 gain reflected 16.4% growth in comp-store sales and a 155% jump in e-commerce sales.

“We are extremely proud of what our associates accomplished throughout the pandemic,” Weis added. “During these challenging and evolving times, we remain well-positioned to meet the needs of our customers and communities while continuing to deliver value to our shareholders.”

Related:Publix sales edge up in first quarter

Also yesterday, Weis Markets announced it plans to invest $135 million in capital expenditures for 2021. Projects will range from new stores and fuel stations to store remodels, technology upgrades and over 1,000 smaller store improvement. One new store and one remodeled location have been opened so far this year.

Overall, Weis Markets operates 198 supermarkets in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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