Canada's Loblaw misses quarterly revenue estimates on weak demand for household items (updated)

Loblaw Companies

13/11/2024 11:48

(Adds details on results in paragraph 5 and 7)
       Nov 13 (Reuters) - Canadian supermarket retailer Loblaw
Companies  L.TO  missed third-quarter revenue estimates on
Wednesday, hurt by a slowdown in the demand for its
non-essential goods such as household items and electronics.
    Consumers have been holding back on discretionary spending
as prices remain relatively high despite inflationary trends
declining, hurting demand for higher-end brands offered by
retailers such as Loblaw.
        However, demand for value deals has helped Loblaw's
discount banners such as No Frills and Maxi.
  
        "Drug front store sales reflected continued strength in
the beauty category but were pressured by the Company's exit
from certain low margin electronics categories and lower
customer spend on convenience items," the company said.
  
        Same-store sales in the food retail segment grew 0.5% in
the third quarter, compared with 4.5% a year ago.
  
         The company's quarterly revenue rose to C$18.54 billion
($13.28 billion) from C$18.27 billion a year earlier, compared
with analysts' average estimates of C$18.65 billion, according
to data compiled by LSEG.
  
         Loblaw's adjusted earnings per share was C$2.50 in the
third quarter, topping expectations of C$2.45.
  

    ($1 = 1.3960 Canadian dollars)
  

 (Reporting by Neil J Kanatt in Bengaluru; Editing by Shreya
Biswas)
 ((Neil.JKanatt@thomsonreuters.com;))