Better productivity has boosted profits at regional US retailer Weis Markets, which has seen sales remain flat in the first half of its financial year.
The company said yesterday (31 July) its net income increased 10% in the six months to the end of June to US$43.2m. Operating income was up 9.7% at $65.7m.
The better profits came despite flat sales. Net sales increased 0.2% to $1.3bn, with comparable-store sales inching up 0.7%.
"We are operating in a stagnant sales environment resulting from the poor economy and intense competition," president and CEO David Hepfinger said.
"In the second quarter, we continued to improve efficiencies and productivity at store level and in our supply chain while enhancing quality of our customer shopping experience in terms of our in-stock position and overall freshness."
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Weis Markets Reports Second Quarter Earnings Increase
SUNBURY, Pa., July 31, 2012 /PRNewswire/ -- Weis Markets, Inc. (NYSE: WMK) today reported a 12.1% increase in its second quarter net income.
During the thirteen-week period ending June 30, 2012, the Company generated $23.2 million in net income while its earnings per share increased 11.7% to $.86 per share, compared to $.77 per share for the same period in 2011. Second quarter operating income increased 11.4% to $35.3 million.
Second quarter sales increased 0.1% to $677.1 million while comparable store sales increased 0.4%.
"We are operating in a stagnant sales environment resulting from the poor economy and intense competition. In the second quarter, we continued to improve efficiencies and productivity at store level and in our supply chain while enhancing quality of our customer shopping experience in terms of our in-stock position and overall freshness," said Weis Markets' President and CEO David J. Hepfinger. "We also continued to invest in our growth by acquiring and reopening three units in the Delaware Valley and extensively remodeling six units."
The Company also attributed its net income and operating income increases to disciplined promotions and marketing and a decrease in depreciation expenses when it changed depreciation methods from accelerated to straight-line.
Year to Date
For the 26-week period ending June 30, 2012, the Company's net income increased 10.0% to $43.2 million while earnings per share increased 10.3% to $1.61 compared to $1.46 in 2011. During the same period the Company's operating income increased 9.7% to $65.7 million. Year to date sales increased 0.2% to $1.3 billion while comparable store sales increased 0.7%.
Original source: Weis Markets
