Weis Markets Q3 net income rises on higher fuel sales, new stores

Overview

• US food retailer's Q3 revenue rose 3% year-over-year

• Q3 net income climbed 31% to $22.2 mln, EPS rose to $0.90 from $0.69

• Revenue growth driven by higher fuel sales, new stores; pharmacy, dairy and produce sales lagged

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• FUEL SALES - Co said higher fuel sales, reflecting both retail price inflation and increased gallons sold, supported Q3 revenue growth

• PHARMACY PRICING HEADWINDS - Co said pharmacy sales were negatively impacted by Inflation Reduction Act Medicare maximum fair price provisions, reducing Q3 revenue growth by about 1.2 percentage points

• EGG PRICE DEFLATION AND PRODUCE DEMAND - Co said dairy sales reflected lower egg pricing and produce sales were negatively affected by lower customer demand during the Cyclospora outbreak

• SUPPLY CHAIN COSTS - Co said improved store inventory shrink performance and lower costs within its internal supply chain helped drive a higher gross profit margin

Company press release:

Key Details

Reuters Recommended Reads

• Nov 3 - Food distributor Sysco says cyclosporiasis outbreak hit Q1 sales

• Nov 3 - Yum says Taco Bell rebounding after cyclosporiasis outbreak hit Q3 sales

• Nov 3 - Marzetti Q1 sales slightly miss, profit falls on cyclospora outbreak, higher costs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)