Loblaw’s Q2 profit up from year ago amid higher customer traffic

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Loblaw Cos. Ltd. reported its second-quarter profit rose compared with a year ago as the company says customer traffic, basket size and item count all increased year-over-year.

The parent company of Loblaws and Shoppers Drug Mart said its net earnings available to common shareholders amounted to $714 million or $2.37 per diluted share for the quarter ended June 14.

The result was up from a profit of $457 million or $1.48 per diluted share in the second quarter of 2024.

“Canadians are seeking value, quality and service and are increasingly rewarding us for delivering on their needs, resulting in sales and market share growth,” said Loblaw president and CEO Per Bank in a press release on Thursday.

“We are bringing our value focus to more and more communities across Canada through our new store openings, with 61 new stores opened since last year.”

On an adjusted basis, Loblaw said it earned $2.40 per diluted share in its latest quarter, up from an adjusted profit of $2.15 per diluted share a year earlier.

Analysts on average had expected an adjusted profit of $2.33 per diluted share, according to LSEG Data & Analytics.

Revenue for the quarter totalled $14.7 billion, up from $13.9 billion, as food retail same-store sales rose by 3.5 per cent.

The company said sales growth was driven by new store openings and improved same-store sales, with “impactful promotions driving higher customer engagement.”

It said consumers continued to focus on value in its food retail business, which resulted in outperformance by hard discount and Real Canadian Superstores banners.

Drug retail same-store sales rose 4.1 per cent, with pharmacy and health care services same-store sales up 6.2 per cent, and front store same-store sales increasing 1.7 per cent.

RBC analyst Irene Nattel called it “another solid quarter” for the company, noting food revenues were “a string bean ahead of forecast.”