Segment Reporting

3 Months Ended

Mar. 29, 2025

Segment Reporting

Segment Reporting

(7) Segment Reporting

The Company manages the business activities on a consolidated basis and has one operating segment: retail. The Company derives all its revenue from sales within Pennsylvania and surrounding states. The Company’s retail segment derives revenues from customers through the retail sale of a range of products including grocery, pharmaceutical and fuel from company owned supermarkets. See Note 6 for the disaggregation of revenue by product category. The accounting policies of the Company’s single segment are the same as those described in the Company’s Significant Accounting Policies.

The Company’s chief operating decision maker is the Chief Operating Officer. The chief operating decision maker assesses performance for the segment and decides how to allocate resources based on operating income and net income that is also reported on the accompanying Consolidated Statements of Income. The measure of segment assets used to assess performance and allocate resources is reported on the Consolidated Balance Sheets as total assets. The chief operating decision maker uses operating income and net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment, such as for acquisitions. Operating income and net income are used to monitor budget versus actual results. The chief operating decision maker also uses operating income and net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment.

WEIS MARKETS, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

The following table presents the retail segment’s revenue, significant segment expenses, and segment operating and net income for the thirteen weeks ended March 29, 2025 and March 30, 2024:

	13 Weeks Ended
(amounts in thousands)	March 29, 2025		March 30, 2024
Net sales	$	1,196,805	$	1,178,168
Other revenue (1)		3,971		4,037
Total revenue		1,200,776		1,182,205
Less:
Cost of sales - stores		880,601		867,556
Labor - stores		108,807		105,193
Depreciation and amortization - stores (2)		23,225		21,964
Occupancy - stores		22,388		21,654
All other expense - stores (3)		80,065		77,924
Administration, manufacturing, and property management expense		32,757		32,780
Distribution and transportation		29,897		27,769
Income from operations		23,036		27,364
Other income (expense) (4)		357		(1,401)
Investment income (loss) and interest expense		4,411		5,552
Provision for income taxes		7,326		8,349
Net income	$	20,478	$	23,165

(1) Other revenue represents commission income earned from a variety of services such as lottery, money orders, third party gift cards, and third party bill pay services.

(2) Segment depreciation and amortization expense, for stores and non-stores, for the thirteen weeks ended March 29, 2025 and March 30, 2024 was $29.6 million and $27.4 million, respectively. Segment additions of long-lived assets for the thirteen weeks ended March 29, 2025 and March 30, 2024 was $36.0 million and $35.5 million, respectively.

(3) All other expense consists of all other store controllable and fixed expenses, such as financial services fees, utilities, and outside services.

(4) Other income (expenses) consists of gains (losses) on SERP investments.