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WM

WEIS MARKETS INC (WMK)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered modest growth: total revenue rose 2.8% year over year to $1,218.8M, EPS increased to $1.01; comparable store sales excluding fuel grew 2.3% as price investments supported volumes in a cautious spending environment .
  • Operating margin compressed slightly (2.6% vs. 2.7% YoY) amid higher labor, outside services, and fixed costs; net income was essentially flat (+1.0% YoY), reflecting $1.1M of transaction expenses tied to a related-party share purchase .
  • No formal revenue/EPS guidance was issued; the Board maintained the quarterly dividend at $0.34 per share (declared July 17; paid August 11) .
  • Near-term stock catalysts: continued price investments, store openings (Ijamsville, MD opened in Q2; Charlotte Hall, MD expected Q3), and normalization of comps post-Easter shift; estimates comparisons are not available due to limited coverage .

What Went Well and What Went Wrong

What Went Well

  • Comparable store sales excluding fuel rose 2.3% in Q2; two-year stacked comps excluding fuel up 2.6%—steady demand despite macro uncertainty .
  • Gross margin improved 10 bps YoY to 25.4%, with gross profit up 3.1%; disciplined merchandising and price investments supported margins while maintaining competitiveness .
  • Strategic growth: opened a new store in Ijamsville, MD; additional opening planned for Charlotte Hall, MD later in summer, underpinning footprint expansion momentum .
    • “We continue to make significant price investments in a market impacted by cautious customer spending” — Jonathan H. Weis .

What Went Wrong

  • Operating, general and administrative expenses rose 3.7% YoY (22.8% of net sales vs. 22.6%), compressing operating margin to 2.6%; increases driven by labor, repairs/outside services, and fixed expenses including depreciation .
  • Transaction-related costs: ~$1.1M in legal/financial services and a $1.4M excise tax tied to the June 6 related-party share purchase; these weighed on reported results .
  • Year-to-date net income declined 4.9% and EPS fell to $1.77 vs. $1.84 prior year, reflecting higher costs and transaction impacts despite sales growth .

Financial Results

Revenue, Net Income, EPS (chronologically ordered)

MetricQ4 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)1,232.953 1,200.776 1,218.796
Net Sales ($USD Millions)1,227.278 1,196.805 1,214.479
Net Income ($USD Millions)34.677 20.478 26.526
Diluted EPS ($USD)1.29 0.76 1.01
Comp Store Sales ex Fuel YoY (%)1.1% 1.0% 2.3%

Margins (YoY comparison)

MetricQ2 2024Q2 2025
Gross Margin %25.3% 25.4%
Operating Margin %2.7% 2.6%
Net Income Margin %2.2% 2.2%

Segment Net Sales (Q2)

Segment Net Sales ($USD Millions)Q2 2024Q2 2025
Grocery967.437 992.345
Pharmacy148.592 158.567
Fuel64.320 62.273
Manufacturing1.107 1.294
Total Net Sales1,181.456 1,214.479

Segment Mix (% of Net Sales, Q2)

Segment Mix (%)Q2 2024Q2 2025
Grocery81.9% 81.7%
Pharmacy12.6% 13.1%
Fuel5.4% 5.1%
Manufacturing0.1% 0.1%

KPIs (comps and adjustments)

KPIQ4 2024Q1 2025Q2 2025
Comp Store Sales YoY (%)0.8% 0.9% 1.8%
Comp Store Sales ex Fuel YoY (%)1.1% 1.0% 2.3%
Comp Store Sales ex Fuel Two-Year Stacked (%)1.3% 4.3% 2.6%
Comp Store Sales Adjusted for Easter YoY (%)N/A2.1% 0.6%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/EPS GuidanceFY/Q3 2025None None provided Maintained (no guidance)
Dividend per ShareQ3 2025$0.34 (declared 5/1/2025; paid 5/27/2025) $0.34 (declared 7/17/2025; paid 8/11/2025) Maintained
Store Openings2025Four new stores planned; three by year-end (Lake Linganore, Charlotte Hall, Waldorf, Middletown, DE) Ijamsville, MD opened in Q2; Charlotte Hall, MD expected later summer On track

Earnings Call Themes & Trends

Note: A Q2 2025 call transcript was not available in our document corpus or external sources reviewed; themes below reflect prepared remarks and MD&A.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Price investments & merchandisingSustained price investments; loyalty marketing and e-commerce +46% in FY 2024 Continued significant price investments amid cautious spending; comps ex fuel +2.3% Ongoing investment; steady demand
Store development17 projects completed in 2024; building four new stores in 2025 Ijamsville, MD opened; Charlotte Hall, MD expected; continued capex Accelerating store growth
Cost structure (labor, fixed)Managing expenses; technology efficiencies OG&A up 3.7%; labor, outside services, depreciation increased; operating margin -10 bps YoY Cost headwinds
Macro & fuelInflation and supply chain issues in 2024 Central Atlantic gasoline prices -11.7% YoY in Q2; food-at-home CPI +0.1% (13 weeks) Mixed inflation inputs
Capital allocationRegular dividend maintained Dividend maintained; related-party share purchase ($140M) reducing share count Balanced returns; lower shares outstanding
Regulatory/tariffsNoted general risk factors Tariff uncertainty flagged; potential cost and volume risks Elevated policy risk monitoring

Management Commentary

  • “Our second quarter 2025 results…are in line with our expectations during a time of continuing market changes and macroeconomic uncertainty. We continue to make significant price investments in a market impacted by cautious customer spending.” — Jonathan H. Weis, Chairman, President & CEO .
  • “During the quarter, we opened a new store in a growing part of Maryland’s Frederick County, and we expect to open a new store in Charlotte Hall, MD later this summer.” — Jonathan H. Weis .
  • MD&A emphasized cost drivers: labor and outside services increased, fixed expenses tied to capex rose; OG&A as % of sales up vs. prior year .

Q&A Highlights

No Q2 2025 earnings call transcript was available; no Q&A themes could be verified from primary sources.

Estimates Context

  • Wall Street consensus estimates via S&P Global were unavailable for Q2 2025; as such, beat/miss vs. consensus cannot be determined.
  • Actuals: Total revenue $1,218.8M; EPS $1.01 .
  • Note: Consensus estimates were unavailable via S&P Global at the time of this report.

Key Takeaways for Investors

  • Defensive performance with steady comps ex fuel and modest gross margin improvement despite cost pressures; op margin compression highlights continued need for cost discipline .
  • Near-term growth supported by store openings and loyalty/price investments; watch cost trajectory in labor and services as capex ramps .
  • Share count reduction from the $140M related-party share purchase provides EPS support; transaction costs temporarily weighed on OG&A .
  • Pharmacy mix ticked higher; fuel mix declined YoY—category mix shifts can influence margin profile and comps .
  • Macro inputs mixed: modest food-at-home CPI, lower gasoline prices; tariff uncertainty flagged in risk factors could affect costs and volumes .
  • Dividend intact ($0.34/share); cash and marketable securities remain significant even after funding share purchase—supporting capital flexibility .
  • With consensus estimates unavailable, trading setup hinges on operational updates and store growth cadence rather than “beat/miss” narratives; monitor Q3 comp normalization post-Easter shift .