Canada’s Loblaw misses fourth-quarter revenue estimates
By Reuters
| 1 min read
Still-high inflation and rising cost-of-living has led Canadian consumers to try and tighten household budgets and save money, impacting their discretionary spending. Photo: Getty Images Plus
Canadian retailer Loblaw on Wednesday missed analysts’ estimates for fourth-quarter revenue, signaling consumers are turning cautious and more discerning in their spending pattern as tariff uncertainty hovers.
Still-high inflation and rising cost-of-living has led Canadian consumers to try and tighten household budgets and save money, impacting their discretionary spending.
Quarterly same-store sales at Loblaw’s drug retail rose 3.9 per cent from a year ago, while in food retail segment they increased by 1.5 per cent.
However, sales in Canada in December saw a brief bump up due to the holiday season, as consumers increased their spending on food and beverages. Demand for value deals helped Loblaw’s discount banners such as No Frills and Maxi.
The company’s revenue came in at C$16.38 billion for the quarter ended January 3, compared with analysts’ estimates of $16.77 billion, according to data compiled by LSEG.
On an adjusted basis, Loblaw earned 67 cents per share in the reported quarter, slightly ahead of estimates of 66 cents.
Loblaw expects annual adjusted net earnings per share to grow in the high single-digits, compared with analysts’ expectations of a 7.9 per cent rise to $2.61.
— Reporting by Koyena Das in Bengaluru
