US: Weis Markets sales, earnings fall
Weis market share stable, but sales drop
US supermarket group Weis Markets has booked lower sales and earnings for 2013 as a "stagnant" performance from centre-store categories and declining food stamp spending took effect.
The company said sales fell 0.3% in the 52 weeks to 28 December, dropping to US$2.69bn from $2.7bn in the prior year period.
Weis Markets' earnings decline was steeper. Pre-tax profit fell to $115.9m in 2013, down 11.5% year-on-year. Net earnings dropped 13.1% to $71.7m, dented by one-time charges including a severance agreement with its former CEO.
"While the company's market share remained stable, the company's year-to-date results were impacted by the trends affecting its fourth quarter results: stagnant sales performance in key centre store categories, lower comparable store gas sales due to significant fuel price deflation and a decline in SNAP sales, which accelerated in the fourth quarter," Weis said.
Weis Markets Reports Fourth Quarter Results
SUNBURY, Pa., March 4, 2014 /PRNewswire/ -- Weis Markets, Inc. (NYSE: WMK) today issued its fourth quarter results. In the thirteen-week period ending December 28, 2013, the Company's sales totaled $686.4 million, down 1.1% compared to the same period in 2012. Comparable store sales for the same period were down 3.5%.
Fourth quarter net income declined 28.9% to $15.7 million compared to the same period in 2012. Fourth quarter earnings per share totaled $.59 compared to $.83 in 2012.
The Company's fourth quarter results were impacted by a decline in food stamp/SNAP spending in its stores and a shortened holiday season, which impacted sales in key center store categories. Its results were affected by fuel price deflation, which resulted in lower retail gas sales. Deli sales were also lower due to manufacturer recalls.
The Company attributed its lower fourth quarter net income to these sales trends and the recognition of a $680,000 future liability associated with the lease commitment of a closed store property.
Year to Date Results
In 2013, the Company's sales totaled $2.7 billion, down 0.3% compared to 2012. Comparable store sales for the 52 week period ending December 28, 2013 declined 2.6%. Year to date net income totaled 2.7% of net sales or $71.7 million, down 13.1%. The Company's year to date earnings per share totaled $2.67 compared to $3.07 in 2012.
While the Company's market share remained stable, the Company's year-to-date results were impacted by the trends affecting its fourth quarter results: stagnant sales performance in key center store categories, lower comparable store gas sales due to significant fuel price deflation and a decline in SNAP sales, which accelerated in the fourth quarter.
The Company's 2013 net income was impacted by a $6.1 million charge for the separation agreement of its former Chief Executive Officer, a $2.1 million impairment loss for four properties and, as detailed in the fourth quarter section, a $680,000 future liability associated with the lease commitment of a closed store property.
Original source: Weis Markets
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