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Weis Markets Q3 Profit Rises 31.4% as Gross Margin Expands
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Weis Markets reported (WMK ) on November 3, 2026, that third-quarter net income rose 31.4% to $22.21 million as an expanded gross profit margin helped earnings grow much faster than revenue. Earnings per share increased to $0.90 from $0.69 for the 13 weeks ended September 26, 2026.
Total revenue increased 3.0% to $1.28 billion from $1.24 billion. Gross profit rose 5.8% to $324.61 million, lifting gross profit margin to 25.5% from 24.8%. Income from operations climbed 38.6% to $28.51 million, and that gain more than offset lower investment income and a higher effective income tax rate.
“Improved store inventory shrink performance and lower costs within our internal supply chain helped drive a higher gross profit margin,” said Chairman, President and CEO Jonathan H. Weis. Those improvements help explain why gross profit and operating income grew faster than revenue.
Fuel Supports Sales as Other Categories Weaken
Comparable store sales increased 1.3%, but declined 1.2% when fuel was excluded. Weis attributed total revenue growth primarily to higher fuel sales, reflecting retail price inflation and increased gallons sold, together with sales from new stores. Lower pharmacy, dairy and produce sales partially offset those gains. The gap between the two comparable-sales measures shows how much fuel influenced the headline sales comparison.
Management estimated that pricing headwinds tied to the Inflation Reduction Act’s Medicare maximum fair price provisions reduced pharmacy sales by approximately $14.56 million and total revenue growth by approximately 1.2 percentage points. Those provisions took effect January 1, 2026. Dairy sales reflected lower egg pricing than a year earlier, while produce sales were hurt by lower customer demand during the third-quarter Cyclospora outbreak.
Customers remained cautious and sought affordability and value, according to Weis. The company continued price investments and an expanded loyalty marketing program to support those customers.
Margin Gains Extend Through the Year
The year-to-date figures show the same combination of moderate sales growth and faster profit gains. For the 39 weeks ended September 26, revenue increased 4.1% to $3.81 billion, while net income rose 18.1% to $72.92 million. Gross profit margin improved to 25.9% from 25.0%, and income from operations increased 28.6% to $93.31 million. Comparable store sales rose 1.9%, but slipped 0.1% excluding fuel.
The company estimated that pharmacy pricing reduced pharmacy sales by approximately $32.75 million over that longer period and cut total revenue growth by approximately 0.9 percentage points, even as overall pharmacy sales increased.
The board declared a $0.34-per-share quarterly dividend on October 29, 2026, payable November 23, 2026, to shareholders of record on November 9, 2026.
The quarter leaves Weis Markets with stronger profitability but a contracting comparable-sales base once fuel is removed. The central question for subsequent results is whether margin improvements can continue to drive earnings growth while pharmacy pricing remains a measurable drag and comparable sales excluding fuel remain negative.
