Weis Markets 2025 Q1 Earnings Misses Targets as Net Income Declines 11.6%

Weis Markets (WMK) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company's results fell short of market expectations, with a notable decline in net income by 11.6% compared to the previous year. Adjusted net sales, accounting for the Easter holiday shift, demonstrated a 2.7% increase, aligning with the revised guidance. Weis Markets is set to open four new stores by early 2026, reinforcing its expansion strategy despite the current earnings slump.

Revenue
Total revenue for Weis Markets in the first quarter of 2025 rose by 1.6% to $1.20 billion compared to $1.18 billion in the same quarter of the previous year. The grocery segment led the revenue contributions with $993.10 million, followed by the pharmacy sector at $148.09 million. The fuel segment added $53.49 million, and manufacturing reported $2.12 million. Overall, the net sales reached $1.20 billion.

Earnings/Net Income
Weis Markets reported an EPS decline of 11.6%, dropping to $0.76 in 2025 Q1 from $0.86 in the previous year's Q1. Net income similarly fell to $20.48 million, marking an 11.6% decrease from the $23.16 million reported in 2024 Q1. The EPS performance reflects a challenging financial quarter.

Price Action
The stock price of Weis Markets has tumbled 8.17% during the latest trading day, has dropped 6.69% during the most recent full trading week, and has climbed 3.27% month-to-date.

Post-Earnings Price Action Review
Over the last five years, the investment strategy of buying Weis Markets (WMK) shares following a quarter-over-quarter revenue decline and holding them for 30 days has yielded a 30.67% return. This performance slightly underperformed the benchmark's return of 54.79%, indicating moderate returns with associated risks. The strategy's Sharpe ratio of 0.35 and maximum drawdown of -22.61% highlight the risk inherent in such investments, providing investors with insight into potential volatility and returns within this timeframe.

CEO Commentary
"Our first quarter 2025 results, adjusted for the year-over-year Easter holiday shift, are in line with our expectations despite the challenges of an uncertain macroeconomic environment," said Jonathan H. Weis, Chairman, President, and CEO of Weis Markets, Inc. He highlighted that net sales benefited from significant regional weather events, continued product price investments, and an increased tempo of the loyalty marketing rewards program. Weis expressed gratitude to associates for their efforts to enhance customer service and noted strategic cost investments aimed at improving efficiencies and customer experience.

Guidance
Weis Markets is building four new stores, with three expected to open by the end of 2025 and the fourth early in 2026. Each new store will exceed 60,000 square feet and feature modern amenities, indicating a commitment to expanding market presence. The company maintains a quarterly cash dividend of $0.34 per share, reflecting confidence in financial stability amid current challenges.

Additional News
Weis Markets recently announced the promotion of Bob Gleeson to Chief Operating Officer (COO), enhancing its executive leadership team. The company also declared a quarterly cash dividend of $0.34 per share on May 1, 2025, underscoring its commitment to shareholder returns. Furthermore, Weis Markets plans to open four new stores, focusing on expanding its footprint in Maryland and Delaware, which demonstrates continued investments in growth and regional presence. These strategic developments reflect Weis Markets' focus on operational excellence and shareholder value.