Weis Markets (WMK) Q2 Revenue Rises 2.8%

Weis Markets (WMK 5.42%), a regional supermarket operator with 199 stores across the Mid-Atlantic, reported its financial results for the second quarter of fiscal 2025 on August 6, 2025. Weis Markets delivered GAAP revenue growth and higher GAAP earnings per share in Q2 2025. The release, coming amid ongoing shifts in consumer behavior and cost inflation, stated results were in line with management’s expectations. There were no Wall Street analyst estimates available for comparison. Overall, the quarter showed steady sales growth.

Business Overview and Current Focus

Weis Markets is a supermarket and grocery chain serving customers in seven Mid-Atlantic states. Its offerings include conventional groceries as well as fresh departments like produce, meat, bakery, and dairy. The company also operates its own distribution center and several food manufacturing facilities, giving it control over a significant portion of its supply chain.

In recent years, it has centered its strategy around expanding and updating stores, self-distribution for cost control, and boosting customer loyalty through targeted promotions and online services. Weis Markets dedicates major investment to store openings and remodels, supports growth by self-distributing over half of its store products, and runs programs to retain loyal shoppers. Execution in these areas, plus sustainability and workforce development, remain key to maintaining market share and profitability.

Quarter Highlights: Growth, Margins, and Store Expansion

Revenue rose 2.8% year over year in Q2 2025. Adjusted for the timing of the Easter holiday, management noted sales increased 1.6% in Q2 2025. Comparable store sales, an important retail metric that measures sales growth at outlets open at least a year, climbed 2.3% year-over-year excluding fuel in Q2 2025. Management also reported comparable store sales adjusted for Easter timing were up 0.6% in Q2 2025, indicating much of the headline sales growth in Q2 2025 was due to the calendar shift, not stronger underlying retail trends.

Net income (GAAP) edged up 1.0%, reaching $26.53 million in Q2 2025. Earnings per share (GAAP) increased to $1.01 from $0.98 in Q2 2025. This modest growth in net income in Q2 2025 included a one-time $1.1 million pre-tax cost from a related party share purchase agreement. However, year-to-date figures for net income (GAAP) and earnings per share (GAAP) are down for the 26-week period ended Q2 2025 compared to the prior year.

Operating margin, which reflects profit left after deducting costs and expenses from revenue, slipped to 2.63% in Q2 2025 from 2.75% in Q2 2024. Operating expenses rose faster than sales growth in Q2 2025. Management highlighted ongoing “significant price investments” driven by promotions and value-focused customer behavior.

Store expansion continued at a deliberate pace, with one new store opened in Frederick County, Maryland, bringing the chain’s total to 199. Another store opening is scheduled in Charlotte Hall, Maryland later in the summer. The company continues to invest in updating and expanding its presence in existing and new markets, which is a key lever for revenue growth over time.

Financial Details and Dividend

Weis Markets maintained its quarterly cash dividend at $0.34 per share. The board declared the same payout as the previous quarter, marking a consistent return to shareholders. No dividend increase or decrease was announced in the period, continuing the company’s recent trend of stability.

Beyond the headline figures, rising expenses were a notable theme. Operating, general, and administrative expense growth (GAAP) has been a persistent challenge, growing faster than sales both in Q2 and year-to-date 2025. Cost inflation affecting supplies, labor, and promotions contributed to a narrowing margin and slowing profit growth, even as sales trends stayed positive.

Company Initiatives: Distribution, Customer Programs, and People

Distribution and operational efficiency remain priorities. Weis Markets distributes more than half its products through its own distribution center and operates three manufacturing locations. This control can help fend off supply shocks and manage product costs. However, competitive conditions and inflation have made expense management critical. No major new distribution initiatives were noted for this quarter, but efficiency remains a stated pillar of strategy.

Weis Markets’ approach to customer loyalty includes loyalty programs and its “Weis 2 Go Online” click-and-collect grocery program, which was offered at 190 store locations as of the end of fiscal 2024. Management described “significant price investments,” reflecting efforts to retain customers with discounts and promotions as consumers remain price sensitive.

Sustainability measures remain in the background. Weis Markets has converted 96% of its stores to LED lighting since 2017, participates in waste reduction and the EPA GreenChill program, and continues investments in efficient operations and green design. While the current release did not mention new environmental initiatives, these remain a part of the company’s long-term focus.

Workforce development is another area of emphasis. Management thanked its team of approximately 22,000 associates, highlighting their importance in delivering store service and supporting growth. The company invests in training and internal career paths, which aligns with its aim to sustain quality and operational momentum. Expense growth in operating costs was notable this quarter.

Looking Ahead: Guidance and Topics to Watch

Management did not provide formal numerical guidance for upcoming quarters or the full year. The quarterly filing stated, “Transactions are in line with our expectations during a time of continuing market changes and macroeconomic uncertainty.” No specific sales, earnings, or margin targets were offered for investors to track.

In the quarters ahead, investors may focus on further margin developments, especially as operating expenses outpaced revenue growth in Q2 2025. Store expansion remains steady, but profit recovery and cost discipline could be key variables. Dividend payments stayed level.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.