Canada's Loblaw Q2 profit beats on e-commerce sales growth, customer traffic

Loblaw Companies

30/07/2026 11:41

Overview
Canada grocery and pharmacy retailer's Q2 revenue rose 4.1% but slightly missed analyst expectations
Adjusted diluted EPS for Q2 grew 11.9%, beating analyst expectations
Company completed sale of PC Financial and repurchased 8.8 mln shares for C$552 mln in Q2

Outlook
Loblaw expects adjusted EPS growth in the high single-digits for 2026
Company plans to invest about C$2.4 bln in capital expenditures in 2026
Loblaw expects to allocate significant free cash flow to share repurchases in 2026

Result Drivers
FOOD RETAIL GROWTH - Food retail sales rose 3.3%, driven by higher customer traffic, larger basket sizes, and e-commerce sales growth
DRUG RETAIL STRENGTH - Drug retail sales increased 6.1%, led by specialty and chronic prescriptions and growth in beauty and OTC categories
STORE EXPANSION - Opened 14 new food and drug stores, including discount banners and first T&T location in California, contributing to sales growth

Company press release: ID:nGNX7ttzdW

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
C$15.05 bln
C$15.07 bln (5 Analysts)
Q2 Adjusted EPS
Beat
C$0.66
C$0.65 (7 Analysts)
Q2 EPS
 
C$0.64
 
Q2 Adjusted Net Income
Beat
C$774 mln
C$745.35 mln (2 Analysts)
Q2 Net Income
 
C$751 mln
 
Q2 Adjusted EBITDA
Slight Miss*
C$1.84 bln
C$1.85 bln (5 Analysts)
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy"
Wall Street's median 12-month price target for Loblaw Companies Ltd is C$70.00, about 6% above its July 29 closing price of C$66.03
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads
July 29 - Jeronimo Martins misses profit estimates as consumers remain cautious
July 29 - Sprouts Farmers Market Q2 sales edges past estimates on new store openings
July 29 - Netherlands' Redcare Pharmacy Q2 revenue rises; reaffirms 2026 outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)