Dive Brief:
- Weis Markets reported a 1.2% decrease in comparable-store sales excluding fuel during its third quarter, the company reported Tuesday.
- Net income, meanwhile, spiked to $22.2 million, a more than 30% year-over-year increase that helped the grocer rebound from last quarter’s nearly 10% drop.
- Weis Markets’ comparable-store sales have been on the decline for most of fiscal 2026, but the retailer’s total revenue has held steady.
Dive Insight:
Weis Markets reported the second straight quarter with declining comp-store sales without fuel.
That metric increased in Q1 by just over 1%, but then dropped by nearly half a percentage point in Q2.
Net income, on the other hand, has seen more drastic ups and downs. In the first quarter, Weis Markets reported a 42.5% year-over-year increase in net income, to almost $28 million. However, net income decreased nearly 10% in Q2, to about $23 million.
Total revenue growth has held steady for the retailer, increasing 4.6% in both Q1 and Q2, and ticking up 3% in Q3 to approximately $1.3 billion.
“Higher fuel sales, reflecting both retail price inflation and increased gallons sold, along with sales from new stores, supported the quarter’s total revenue increase,” Weis Markets Chairman, President and CEO Jonathan H. Weis said in a statement about the Q3 results. “Inflation Reduction Act-related pharmacy pricing changes, egg price deflation and lower produce demand during the Cyclospora outbreak moderated sales performance.”
The grocer reported that pharmacy revenue growth was negatively impacted by approximately $14.6 million due to pricing headwinds related to the Inflation Reduction Act’s Medicare maximum fair price provisions, which took effect Jan. 1. This reduced total revenue growth by 1.2 percentage points.
Sam Silverstein contributed reporting.
