TORONTO — Loblaw Companies Ltd reported stronger-than-expected second-quarter revenue and profit on Thursday, boosted by rising consumer demand for essentials and discount alternatives amid economic uncertainty and escalating trade tensions.
The Canadian retail giant, which operates banners including Real Canadian Superstore and Maxi, saw same-store sales rise 3.5% in its food segment, while drug retail sales increased 4.1% compared to the same period a year earlier.
Loblaw’s total retail sales, the company’s most significant revenue contributor, jumped 5.4% in the quarter ended June 14, accelerating from a 1.4% increase in the same period last year. E-commerce sales surged 17.5%.
Analysts note a growing preference among consumers for value-driven and locally produced products, a trend further fueled by the “Buy Canadian” movement. Triggered by recent U.S.-Canada trade disputes, the campaign has helped boost sales of Canadian-made goods across retail shelves.
The company’s quarterly revenue climbed 5.2% to C$14.67 billion ($10.78 billion), beating analyst estimates of C$14.64 billion, according to LSEG data. Adjusted earnings per share came in at C$2.40, ahead of the projected C$2.33.
Loblaw reaffirmed its full-year forecast for high single-digit growth in adjusted earnings.
In a separate announcement, the company said it will initiate a 4-for-1 stock split to make shares more accessible to individual and employee investors.
The earnings beat comes just weeks after U.S. President Trump threatened a 35% tariff on Canadian imports starting August 1, raising concerns over a potential trade war.
($1 = 1.3614 Canadian dollars)
