Loblaw 1Q Profit, Revenue Rise as Promotional, Discount Activity Drive Sales

By Adriano Marchese

Loblaw reported a rise in first-quarter profit, fueled by strong consumer demand for its discount brands and promotional offers, which helped lift revenue.

The Canadian grocery giant on Wednesday posted a net income of 503 million Canadian dollars ($363.6 million), or C$1.66 a share for the three months ended March 22, up from C$459 million, or C$1.47 a share, in the comparable quarter a year ago.

Adjusted earnings were C$1.88 a share. According to FactSet, analysts were expecting C$1.86 a share.

Sales rose to C$14.14 billion from C$13.58 billion, topping analyst expectation of a more modest rise to C$14.06 billion.

Loblaw has two main segments, its food retail business under the banner Loblaw and its drug retail segment, which operates under the name Shoppers Drug Mart, which saw same-store sales rise 2.2% and 3.8%, respectively.

In the period, traffic in its stores remained flat, but customers purchased more per visit. The company said that its value offerings, loyalty program and promotions drove sales momentum in the period, which helped with market share gains.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

04-30-25 0707ET