WEIS MARKETS INC
For the period ended Sep 28, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 28, 2024 · Filed Nov 7, 2024
WMK$77.72-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-29; filed 2024-08-08.
0000105418-24-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-28; filed 2024-11-07.
0000105418-24-000057
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 49 current paragraphs.
31 unchanged; 16 reworded; 2 added; 1 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
A breakdown of the material increases (decreases) as a percent of sales in "Operating, general and administrative expenses" is as follows:
Current report
Cash flows from operating activities increased $57.2 million in the first thirty-nine weeks of 2024 compared to the first thirty-nine weeks of 2023. The increase in cash flow from operating activities is primarily due to the one-time business practice used in late September 2023 to settle most outstanding working capital obligations in advance of the conversion to a new enterprise resource planning system in early October 2023 in order to mitigate any possible payment delays.
Removed paragraphs (1)
Previous report
Cash flows from operating activities decreased $5.9 million in the first twenty-six weeks of 2024 compared to the first twenty-six weeks of 2023. The decrease in cash flow from operating activities is primarily due to less net income when compared to the same period in 2023.
Reworded paragraphs (16)
Previous wording
Weis Markets is a conventional supermarket chain that operates 196 retail stores with over 23 thousand associates located in Pennsylvania and six surrounding states: Delaware, Maryland, New Jersey, New York, Virginia and West Virginia. Approximately 95% of Weis Markets associates are paid an hourly wage. Its products sold include groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services at certain locations, deli products, prepared foods, bakery products, beer and wine, fuel, and general merchandise items, such as health and beauty care and household products. The store product selection includes national, local and private brands and the Company promotes competitive pricing by using Everyday Lower Price; Low Price Guarantee; Low, Low Price; 3 Day Sale; senior and military discounts; and Loyalty programs. The Loyalty program includes reward points that may be redeemed for discounts on items in store, at one of the Company’s fuel stations or one of its third-party fuel station partners.
Current wording
Weis Markets is a conventional supermarket chain that currently operates 198 retail stores with over 22 thousand associates located in Pennsylvania and six surrounding states: Delaware, Maryland, New Jersey, New York, Virginia and West Virginia. Approximately 94% of Weis Markets associates are paid an hourly wage. Its products sold include groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services at certain locations, deli products, prepared foods, bakery products, beer and wine, fuel, and general merchandise items, such as health and beauty care and household products. The store product selection includes national, local and private brands and the Company promotes competitive pricing by using Everyday Lower Price; Low Price Guarantee; Low, Low Price; 3 Day Sale; senior and military discounts; and Loyalty programs. The Loyalty program includes reward points that may be redeemed for discounts on items in store, at one of the Company’s fuel stations or one of its third-party fuel station partners.
Previous wording
Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 53% of products with the remaining being supplied by direct store delivery vendors and regional wholesalers. In addition, the Company has three manufacturing facilities which process milk, ice cream and fresh meat products. The corporate offices are located in Sunbury, PA where the Company was founded in 1912.
Current wording
Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 52% of products with the remaining being supplied by direct store delivery vendors and regional wholesalers. In addition, the Company has three manufacturing facilities which process milk, ice cream and fresh meat products. The corporate offices are located in Sunbury, PA where the Company was founded in 1912.
Previous wording
The Company has provided additional product offerings and customer conveniences such as “Weis 2 Go Online,” currently offered at 188 store locations. “Weis 2 Go Online” allows the customer to order on-line and have their order delivered or picked up at an expedient store drive-thru. The Company also currently offers home delivery to customers in all 196 of its locations via multiple grocery delivery partners.
Current wording
The Company has provided additional product offerings and customer conveniences such as “Weis 2 Go Online,” currently offered at 190 store locations. “Weis 2 Go Online” allows the customer to order on-line and have their order delivered or picked up at an expedient store drive-thru. The Company also currently offers home delivery to customers in all 198 of its locations via multiple grocery delivery partners.
Previous wording
Year-over-year and sequential comparisons are the primary calculations used to analyze operating results, however, due to fluctuations caused by declining government benefits, pharmacy sales growth, the Easter holiday shift to the first quarter of fiscal 2024 from the second quarter of fiscal 2023 and inflationary trends in the food retail industry, management believes it is necessary to provide a Two-Year Stacked Comparable Store Sales analysis. The following tables provide the two-year stacked comparable store sales, including and excluding fuel, for the periods ended June 29, 2024, and July 1, 2023, as well as periods ended July 1, 2023, and June 25, 2022, respectively. Comparable store sales increased 0.5 percent on an individual year-over-year basis and increased 4.0 percent on a two-year stacked basis for the thirteen weeks ended June 29, 2024. Comparable store sales increased 1.8 percent on an individual year-over-year basis and increased 5.1 percent on a two-year stacked basis in the twenty-six weeks ended June 29, 2024.
Current wording
Year-over-year and sequential comparisons are the primary calculations used to analyze operating results, however, due to fluctuations caused by declining government benefits, pharmacy sales growth, and inflationary trends in the food retail industry, management believes it is necessary to provide a Two-Year Stacked Comparable Store Sales analysis. The following tables provide the two-year stacked comparable store sales, including and excluding fuel, for the periods ended September 28, 2024, and September 30, 2023, as well as periods ended September 30, 2023, and September 24, 2022, respectively. Comparable store sales increased 2.5 percent on an individual year-over-year basis and increased 3.3 percent on a two-year stacked basis for the thirteen weeks ended September 28, 2024. Comparable store sales increased 2.0 percent on an individual year-over-year basis and increased 4.5 percent on a two-year stacked basis in the thirty-nine weeks ended September 28, 2024.
Previous wording
When calculating the percentage change in comparable store sales, the Company defines a new store to be comparable after it has been in operation for five full fiscal quarters. Relocated stores and stores with expanded square footage are
Current wording
When calculating the percentage change in comparable store sales, the Company defines a new store to be comparable after it has been in operation for five full fiscal quarters. Relocated stores and stores with expanded square footage are included in comparable store sales since these units are located in existing markets and are open during construction. Planned store dispositions are excluded from the calculation. The Company only includes retail food stores in the calculation.
Previous wording
According to the latest U.S. Bureau of Labor Statistics’ report, the Seasonally Adjusted Food-at-Home Consumer Price Index increased 0.1% and 0.2% for the thirteen week periods ended June 29, 2024 and July 1, 2023, respectively. The Seasonally Adjusted Food-at-Home Consumer Price Index increased 0.9% and 0.2% for twenty-six week periods ended June 29, 2024 and July 1, 2023, respectively. According to the U.S. Department of Energy, the average price of gasoline in the Central Atlantic States increased 0.5% or $0.02 per gallon in the thirteen weeks ended June 29, 2024, compared to the same period in 2023. The average price of gasoline in the Central Atlantic States decreased 7.9% or $0.29 per gallon in the first twenty-six weeks of 2024 when compared to the same period in 2023. Although the U.S. Bureau of Labor Statistics’ and the U.S. Department of Energy indices may be reflective of broader trends, they will not necessarily be indicative of the Company’s actual results.
Current wording
According to the latest U.S. Bureau of Labor Statistics’ report, the Seasonally Adjusted Food-at-Home Consumer Price Index increased 0.7% and 0.5% for the thirteen week periods ended September 28, 2024 and September 30, 2023, respectively. The Seasonally Adjusted Food-at-Home Consumer Price Index increased 1.6% and 1.0% for thirty-nine week periods ended September 28, 2024 and September 30, 2023, respectively. According to the U.S. Department of Energy, the average price of gasoline in the Central Atlantic States decreased 8.4% or $0.31 per gallon in the thirteen weeks ended September 28, 2024, compared to the same period in 2023. The average price of gasoline in the Central Atlantic States decreased 10.1% or $0.38 per gallon in the first thirty-nine weeks of 2024 when compared to the same period in 2023. Although the U.S. Bureau of Labor Statistics’ and the U.S. Department of Energy indices may be reflective of broader trends, they will not necessarily be indicative of the Company’s actual results.
Previous wording
Total net sales increased 0.2% to $1.2 billion for the thirteen weeks ended June 29, 2024, from $1.2 billion for the thirteen weeks ended July 1, 2023. In the twenty-six weeks ended June 29, 2024, total net sales increased 1.6% to $2.4 billion from $2.3 billion. The Company’s second quarter sales were negatively impacted from the Easter holiday period, which occurred in the first quarter this year and second quarter last year. Management estimates the incremental holiday sales impact was approximately $14.0 million. Comparable store sales for the thirteen weeks ended June 29, 2024, compared to the same period in 2023 increased 0.5% including fuel and 0.3% excluding fuel. Comparable store sales for the twenty-six weeks ended June 29, 2024, compared to the same period in 2023 increased 1.8% including and excluding fuel.
Current wording
Total net sales increased 2.2% to $1.2 billion for the thirteen weeks ended September 28, 2024, from $1.2 billion for the thirteen weeks ended September 30, 2023. In the thirty-nine weeks ended September 28, 2024, total net sales increased 1.8% to $3.5 billion from $3.5 billion. The increase in total net sales includes retail price inflation in grocery, pharmacy and fresh product categories. Comparable store sales for the thirteen weeks ended September 28, 2024, compared to the same period in 2023 increased 2.5% including fuel and 3.0% excluding fuel. Comparable store sales for the thirty-nine weeks ended September 28, 2024, compared to the same period in 2023 increased 2.0% including fuel and 2.2% excluding fuel.
Previous wording
Gross profit on sales decreased 1.4% and increased 0.2% for the thirteen and twenty-six weeks ended June 29, 2024, compared to the same periods in 2023. Gross profit margin decreased 0.5% and 0.4% for the thirteen and twenty-six weeks ended June 29, 2024, respectively, compared to the same periods in 2023.
Current wording
Gross profit on sales increased 1.9% and 0.7% for the thirteen and thirty-nine weeks ended September 28, 2024, compared to the same periods in 2023. Gross profit margin decreased 0.1% and 0.3% for the thirteen and thirty-nine weeks ended September 28, 2024, respectively, compared to the same periods in 2023.
Previous wording
Non-cash LIFO inventory valuation adjustments represent expense of $2.2 million in the first twenty-six weeks of 2024 compared to expense of $2.9 million in the same period in 2023. Although the Company experienced cost inflation and deflation in various commodities for the periods presented, the Company anticipates overall product costs to increase given the recent inflationary trends in the food retail industry.
Current wording
Non-cash LIFO inventory valuation adjustments represent expense of $2.5 million in the first thirty-nine weeks of 2024 compared to expense of $4.3 million in the same period in 2023. Although the Company experienced cost inflation and deflation in various commodities for the periods presented, the Company anticipates overall product costs to slightly increase given the recent inflationary trends in the food retail industry.
Previous wording
Employee expenses such as wages, employer paid taxes, health care benefits and retirement plans, comprise approximately 59.9% of the total “Operating, general and administrative expenses.” As a percent of sales, direct store labor increased 0.3% and increased 0.2% in the thirteen and twenty-six week periods ended June 29, 2024 when compared to the same periods in 2023, respectively.
Current wording
Employee expenses such as wages, employer paid taxes, health care benefits and retirement plans, comprise approximately 60.4% of the total “Operating, general and administrative expenses.” As a percent of sales, direct store labor increased 0.2% in each of the thirteen and thirty-nine week periods ended September 28, 2024 when compared to the same periods in 2023, respectively.
Previous wording
Depreciation and amortization expense charged to “Operating, general and administrative expenses” was $25.2 million, or 2.1% of net sales during the thirteen weeks ended June 29, 2024 compared to $24.8 million, or 2.1% of net sales during the thirteen weeks ended July 1, 2023. During the first twenty-six weeks of 2024 and 2023, depreciation and amortization expense charged to “Operating, general and administrative expenses” was $50.0 million, or 2.1% of net sales and $48.9 million, or 2.1% of net sales, respectively. See the Liquidity and Capital Resources section for further information regarding the Company’s capital expenditure program.
Current wording
Depreciation and amortization expense charged to “Operating, general and administrative expenses” was $25.8 million, or 2.2% of net sales during the thirteen weeks ended September 28, 2024 compared to $24.7 million, or 2.1% of net sales during the thirteen weeks ended September 30, 2023. During the first thirty-nine weeks of 2024 and 2023, depreciation and amortization expense charged to “Operating, general and administrative expenses” was $75.7 million, or 2.1% of net sales and $73.6 million, or 2.1% of net sales, respectively. See the Liquidity and Capital Resources section for further information regarding the Company’s capital expenditure program.
Previous wording
Overall, the operating, general and administrative expenses as a percent of sales presented for the thirteen and twenty-six weeks ended June 29, 2024 increased in comparison with the 2023 percent of sales. Employee expenses and third party services, mainly financial service fees and IT expenses, have increased in dollars as well as a percent of sales for the thirteen and twenty-six weeks ended June 29, 2024.
Current wording
Overall, the operating, general and administrative expenses as a percent of sales presented for the thirteen and thirty-nine weeks ended September 28, 2024 benefited in comparison with the 2023 percent of sales due to the gain on disposition of fixed assets, while employee expenses and third party services, mainly professional, financial service fees and IT expenses, increased in dollars as a percent of sales for the thirteen and thirty-nine weeks ended September 28, 2024.
Previous wording
The effective income tax rate was 26.9% and 27.1% for the twenty-six weeks ended June 29, 2024 and July 1, 2023, respectively. The effective income tax rate differed from the federal statutory rate, primarily due to the effect of state taxes, net of permanent differences.
Current wording
The effective income tax rate was 27.2% and 27.1% for the thirty-nine weeks ended September 28, 2024 and September 30, 2023, respectively. The effective income tax rate differed from the federal statutory rate, primarily due to the effect of state taxes, net of permanent differences.
Previous wording
The Company’s investment portfolio consists of high-grade bonds and commercial paper with maturity dates between one and 30 years and four high yield, large capitalized public company equity securities. The portfolio totaled $235.1 million as of June 29, 2024. Management anticipates maintaining the investment portfolio but has the ability to liquidate if needed.
Current wording
The Company’s investment portfolio consists of high-grade bonds and commercial paper with maturity dates between one and 30 years and four high yield, large capitalized public company equity securities. The portfolio totaled $231.4 million as of September 28, 2024. Management anticipates maintaining the investment portfolio but has the ability to liquidate if needed.
Previous wording
In the first twenty-six weeks of 2024, when compared to the same period in 2023, the purchase of property and equipment, net of proceeds from sales, increased $15.6 million and the purchases of marketable securities, net of proceeds from sales and maturities, decreased $21.1 million. Additionally, as a percent of sales, capital expenditures were 2.8% in the first twenty-six weeks of 2024 and 2.1% in the first twenty-six weeks of 2023. The increase as a percent of sales in 2024 compared to 2023 is due to the purchase of two previously leased store locations. For the remainder of 2024, management anticipates maintaining the investment portfolio but has the ability to liquidate if needed.
Current wording
In the first thirty-nine weeks of 2024, when compared to the same period in 2023, the purchase of property and equipment, net of proceeds from sales, increased $26.3 million and the purchases of marketable securities, net of proceeds from sales and maturities, decreased $29.6 million. Additionally, as a percent of sales, capital expenditures were 3.0% in the first thirty-nine weeks of 2024 and 2.2% in the first thirty-nine weeks of 2023. The increase as a percent of sales in 2024 compared to 2023 is due to the purchase of two previously leased store locations. For the remainder of 2024, management anticipates maintaining the investment portfolio but has the ability to liquidate if needed.
Previous wording
The Company paid dividends of $18.3 million in the first twenty-six weeks of 2024 and 2023.
Current wording
The Company paid dividends of $27.4 million in the first thirty-nine weeks of 2024 and 2023.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
included in comparable store sales since these units are located in existing markets and are open during construction. Planned store dispositions are excluded from the calculation. The Company only includes retail food stores in the calculation.