Sales declines impact Weis Markets

Sunbury, Pa. – Declining sales across a variety of categories negatively affected year-over-year fiscal performance of Weis Markets Inc. during the fourth quarter and fiscal year 2013. Net income declined 29% to $15.7 million from $22.1 million during the quarter, and dropped 13% to $71.7 million from $82.5 million during the year.

In addition, net sales declined 1% to $686.4 million from $694.3 million for the quarter, and decreased slightly to $2.69 billion from $2.7 billion for the year. Same-store sales dropped 3.5% for the quarter and shrank 2.6% for the year.

Weis Markets attributed its disappointing performance to stagnant sales performance in key center store categories, lower same-store gas sales due to significant fuel price deflation, a shortened holiday selling season and a decline in food stamp/SNAP sales. In addition, the company said net income in the quarter was affected by the recognition of a $680,000 future liability associated with the lease commitment of a closed store property, and net income in the year was impacted by was impacted by a $6.1 million charge for the separation agreement of its former CEO, a $2.1 million impairment loss for four properties.

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