WEIS MARKETS REPORTS FOURTH QUARTER AND FISCAL YEAR 2023 RESULTS
- None.
- Net income for fiscal year 2023 decreased by 17.1% compared to 2022.
- Fourth quarter net sales decreased by 7.1% compared to the previous year.
- Fourth quarter net income decreased by 28.9% compared to 2022.
The disclosed fiscal results of Weis Markets, Inc. reflect a nuanced picture of the company's performance. While the net sales remained virtually flat year-over-year, the slight increase in comparable store sales by 2.3 percent, when adjusted for the extra week in 2022, suggests a modest organic growth in the customer base or spending. This is further reinforced by the two-year stacked comparable sales growth of 9.8 percent, indicating sustained positive momentum over a longer period.
However, the decline in net income by 17.1 percent for the fiscal year and 28.9 percent for the fourth quarter, alongside a decrease in earnings per share (EPS), raises concerns about the company's profitability. This contraction could be attributed to various factors including increased operational costs, price investments to stay competitive, or a decrease in government benefits as hinted by the CEO. In the context of the retail sector, which operates on thin margins, such a dip in profitability warrants a closer examination of cost structures and efficiency measures.
From an investor's standpoint, the stagnation in net sales coupled with a decrease in net income suggests a potential pressure on the company's margins. It's critical to scrutinize the financial statements to identify the drivers of the reduced profitability. The earnings per share (EPS) figures, being lower in both the fiscal year and fourth quarter, could be indicative of underlying issues that may not be immediately apparent from top-line figures alone. Investors should also consider the declared quarterly cash dividend of $0.34 per share, which represents a return to shareholders but also reflects the company's confidence in its cash flow and financial stability.
Furthermore, it's important to compare these financial metrics with industry benchmarks and competitors to gauge Weis Markets' performance in the broader context. The company's strategy to invest in price and technology to improve efficiencies could be a long-term play to solidify its market position, but it's essential to balance such investments with the need to maintain healthy profit margins.
In the retail industry, particularly in the grocery sector, comparable store sales are a critical metric as they indicate the health of the business excluding the impact of new store openings or closures. Weis Markets' ability to maintain positive comparable sales growth, despite the inflationary pressures and the end of enhanced government benefits, demonstrates resilience and effective operational management. The focus on price investments to remain competitive is a common strategy in the industry, especially in times of economic uncertainty where consumer spending is more sensitive to price changes.
The company's investment in technology to improve efficiencies is reflective of a larger industry trend where retailers are leveraging digital transformation to streamline operations and enhance the customer experience. These investments are often essential for long-term growth but can impact short-term profitability. As such, the balance between current earnings and future potential is a key consideration for stakeholders.
Company's fiscal year 2023 comparable store sales, adjusted for an additional week in 2022 and excluding fuel, increased 2.3 percent
"We are grateful to our associates for their service to our customers and company", said Weis Markets, Inc. Chairman, President and CEO Jonathan H. Weis. "Our fiscal year 2023 and fourth quarter results are in line with our expectations despite an additional week in 2022 and declining government benefits."
"In 2023, we continued to make significant price investments that help us to effectively compete in all our markets and meet the expectations of our customers impacted by the inflationary pressures of recent years. In addition, we carefully managed our business processes and expenses at every level of our company and invested in technologies that improved efficiencies," said Mr. Weis.
The Weis Markets, Inc. Board of Directors declared on February 8, 2024, a quarterly cash dividend of
Fiscal Year 2023 Results
Net sales totaled
The Company's fiscal year 2023 net income (after provision for income taxes) totaled
Fourth Quarter 2023 Results
Net sales totaled
The Company's fourth quarter net income (after provision for income taxes) totaled
About Weis Markets
Founded in 1912, Weis Markets, Inc. is a Mid Atlantic food retailer operating 197 stores in
In addition to historical information, this news release may contain forward-looking statements, which are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. For example, risks and uncertainties can arise with changes in: competitive and reputational risks; financial, investment and infrastructure risks; information security, cybersecurity and data privacy risks; supply chain and third-party risks; risks created by pandemics (such as the COVID-19 outbreak and the related responses of governments, consumers, customers, suppliers and employees); and legal, regulatory and other external risks. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis based on information currently available to us and speak only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risk factors described in other documents the Company files periodically with the Securities and Exchange Commission. Management is also providing a two-year stacked comparable store sales analysis, a non-GAAP measure, because management believes this metric is useful to investors and analysts. It is not recommended that the two-year-stacked analysis be considered a substitute for the Company's operating results as reported in accordance with GAAP.
WEIS MARKETS, INC. | |||||||||||||
COMPARATIVE SUMMARY OF SALES & EARNINGS | |||||||||||||
Fourth Quarter — 2023 | |||||||||||||
(Unaudited) | |||||||||||||
13 Weeks Ended | 14 Weeks Ended | Increase | |||||||||||
December 30, 2023 | December 31, 2022 | (Decrease) | |||||||||||
Net sales | $ | 1,212,975,000 | $ | 1,306,090,000 | (7.1) | % | |||||||
Income from operations | 29,272,000 | 33,576,000 | (12.8) | % | |||||||||
Income before provision for income taxes | $ | 32,466,000 | $ | 35,890,000 | (9.5) | % | |||||||
Provision for income taxes | 11,943,000 | 7,007,000 | 70.4 | % | |||||||||
Net income | $ | 20,523,000 | $ | 28,883,000 | (28.9) | % | |||||||
Weighted-average shares outstanding | 26,898,443 | 26,898,443 | — | ||||||||||
Basic and diluted earnings per share | $ | 0.76 | $ | 1.07 | $ | (0.31) | |||||||
52 Weeks Ended | 53 Weeks Ended | Increase | |||||||||||
December 30, 2023 | December 31, 2022 | (Decrease) | |||||||||||
Net sales | $ | 4,696,950,000 | $ | 4,695,943,000 | 0.0 | % | |||||||
Income from operations | 137,186,000 | 157,052,000 | (12.6) | % | |||||||||
Income before provision for income taxes | $ | 146,696,000 | $ | 160,777,000 | (8.8) | % | |||||||
Provision for income taxes | 42,868,000 | 35,581,000 | 20.5 | % | |||||||||
Net income | $ | 103,828,000 | $ | 125,196,000 | (17.1) | % | |||||||
Weighted-average shares outstanding | 26,898,443 | 26,898,443 | — | ||||||||||
Basic and diluted earnings per share | $ | 3.86 | $ | 4.65 | $ | (0.79) | |||||||
WEIS MARKETS, INC. | ||||||
TWO-YEAR STACKED COMPARABLE STORE SALES | ||||||
Fourth Quarter — 2023 | ||||||
(Unaudited) | ||||||
Percentage Change | ||||||
Fourth Quarter Ended | ||||||
(amounts adjusted for an additional week in 2022) | 2023 vs. 2022 | 2022 vs. 2021 | ||||
Comparable store sales, excluding fuel (individual year) | 0.2 | % | 9.6 | % | ||
Comparable store sales, excluding fuel (two-year stacked) | 9.8 | |||||
Comparable store sales (individual year) | (0.5) | 9.5 | % | |||
Comparable store sales (two-year stacked) | 9.0 | % | ||||
Percentage Change | ||||||
Year Ended | ||||||
(amounts adjusted for an additional week in 2022) | 2023 vs. 2022 | 2022 vs. 2021 | ||||
Comparable store sales, excluding fuel (individual year) | 2.3 | % | 7.5 | % | ||
Comparable store sales, excluding fuel (two-year stacked) | 9.8 | |||||
Comparable store sales (individual year) | 1.7 | 8.8 | % | |||
Comparable store sales (two-year stacked) | 10.5 | % | ||||
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SOURCE Weis Markets
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