WEIS MARKETS INC (WMK)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 delivered solid top-line growth with total revenue of $1.24B (+4.4% YoY) and comps ex-fuel +2.5%, but profitability softened as EPS fell to $0.74 (vs $0.96 prior year) amid higher operating costs and lapping a prior-year asset sale gain .
• Sequentially, revenue rose ~1.9% QoQ to $1.24B while EPS declined to $0.74 from $1.01 in Q2 as operating income compressed (EBIT margin ~1.80% vs ~2.62% in Q2), reflecting cost pressures and price investments .
• Management emphasized customer engagement, prudent cost management, and continued investment in associates, technologies, and facilities; quarterly dividend maintained at $0.34 per share as of Oct 30, 2025 .
• No Wall Street consensus estimates were available via S&P Global for EPS or revenue; therefore, beats/misses vs estimates cannot be determined (attempted retrieval returned no data; consensus unavailable). Values attempted to retrieve from S&P Global.

What Went Well and What Went Wrong

What Went Well

• Net sales growth: Total revenue increased to $1.24B (+4.4% YoY); comps ex-fuel +2.5% and +5.5% on a two-year stacked basis, signaling resilient customer demand despite macro uncertainty .
• Strategic investments: “We continue to make significant investments in our associates, technologies, and facilities that will improve efficiencies, enhance customer experience, and generate long-term shareholder value” — Jonathan H. Weis .
• Store base expansion and customer engagement: Year-to-date store count increased to 201, supported by new openings and enhanced loyalty marketing tempo (Q1), reinforcing medium-term growth drivers .

What Went Wrong

• Profitability compression: EPS declined to $0.74 (vs $0.96 prior year) and operating income fell to $22.38M, driven by higher operating, general and administrative expenses and lapping a $4.58M pre-tax gain in Q3 2024 .
• Margin pressure: EBIT margin compressed to ~1.80% in Q3 (vs ~2.62% in Q2) as price investments and cost inflation weighed on operating leverage .
• Macro and cautious consumer: Management cited “ongoing cautious consumer spending and macroeconomic uncertainty,” implying continued headwinds to ticket growth and promotional efficiency .

Financial Results

Notes:

• Prior-year Q3 2024 included a $4.58M pre-tax gain on disposition of fixed assets, inflating the prior-year net income and EPS comparables .
• Year-to-date 2025 includes $1.24M pre-tax related party share purchase agreement expenses; Q2 included $1.1M pre-tax .

Segment breakdown: Not disclosed (company reports consolidated results; no segment reporting in press releases/8-K) .

KPIs

Source citations for dividends: May 1, 2025 dividend PR (Document 12); July 17, 2025 dividend PR (Document 7); Oct 30, 2025 dividend PR (Document 3); dividend referenced in Q2 and Q3 8-K exhibits .

Guidance Changes

Notes:

• Weis Markets does not issue formal top- or bottom-line numerical guidance in the reviewed materials; capital plans and store openings are discussed qualitatively .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the document set; thus call-specific themes/Q&A are not included (no transcript found in our search window) [ListDocuments].

Management Commentary

• “Despite ongoing cautious consumer spending and macroeconomic uncertainty in the third quarter, our team increased net sales and gross profits through successful customer engagement and operational excellence. We are also focused on prudent cost management.” — Jonathan H. Weis .
• “We continue to make significant investments in our associates, technologies, and facilities that will improve efficiencies, enhance customer experience, and generate long-term shareholder value.” — Jonathan H. Weis .
• Q1 context: “Net sales benefited from significant regional weather events, continuing product price investments, and the increased tempo of our loyalty marketing rewards program.” — Jonathan H. Weis .

Q&A Highlights

• No Q3 2025 earnings call transcript available; Q&A highlights and live guidance clarifications are not accessible in reviewed materials (no transcript found) [ListDocuments].
• Dividend and capital program updates were communicated via press releases and 8-K exhibits rather than on a call .

Estimates Context

• Consensus estimates (EPS and revenue) were unavailable via S&P Global for Q3 2025; attempted retrieval returned no consensus values (coverage appears limited). Values attempted to retrieve from S&P Global.
• Without consensus, we cannot assess beats/misses; near-term estimate revisions may reflect observed margin pressure and EPS trends against improving comps and revenue growth .

Key Takeaways for Investors

• Top-line resilient: Q3 revenue rose to $1.24B (+4.4% YoY) with comps ex-fuel +2.5% and two-year stacked +5.5%, indicating stable demand recovery despite macro headwinds .
• Margin vigilance: EBIT margin compressed to ~1.80% (from ~2.62% in Q2); expect ongoing monitoring of price investments, OG&A trends, and promotional efficiency impacts on profitability .
• Non-recurring prior-year tailwind: Prior-year Q3 benefited from a $4.58M asset disposition gain; normalized comparisons highlight current operating pressures more clearly .
• Strategic tech adoption: Cognira PromoAI partnership should improve promo analytics and trade fund optimization — a lever to bolster margins over time as deployment scales .
• Dividend stability: $0.34/share quarterly dividend maintained; income profile remains consistent amid cyclical variability .
• Store growth supports medium-term thesis: Store openings and 201-store footprint provide incremental revenue runway, particularly in MD/DE markets .
• Actionable: Near-term, focus on cost control signals in subsequent quarters and watch for margin stabilization; medium-term, track promo-optimization benefits and store opening cadence as key drivers of earnings recovery .