Canada's Metro Q3 roughly in line with estimates, Laval strike to hit Q4 as well

METRO

12/08/2026 12:13

Overview
Canada grocery and pharmacy retailer's fiscal Q3 sales rose 1.4%, slightly beating analyst expectations
Adjusted EPS for fiscal Q3 met analyst expectations
Quarterly results were significantly impacted by ongoing labour conflict at Laval distribution centre

Outlook
Metro expects fourth-quarter results to be significantly impacted by Laval produce centre strike
Company expects restructuring to generate C$15 mln in recurring annual net earnings by fiscal 2028
Metro plans to open about a dozen new or converted discount stores in fiscal 2026

Result Drivers
LABOUR CONFLICT - Ongoing strike at Laval produce distribution centre significantly hurt sales and profitability, with estimated C$87 mln lost profit and direct costs in Q3, per management
FOOD SALES DECLINE - Food same-store sales fell 1.5% in Q3, reflecting disruption in Quebec food retail network due to strike
PHARMACY SALES GROWTH - Pharmacy same-store sales rose 4.8% in Q3, driven by prescription drug sales and cosmetics and health and beauty products

Company press release: ID:nCNW4NTYLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Beat*
C$6.97 bln
C$6.91 bln (6 Analysts)
Q3 Adjusted EPS
Meet
C$1.24
C$1.24 (6 Analysts)
Q3 EPS
 
C$1
 
Q3 Adjusted Net Income
 
C$262.60 mln
 
Q3 Net Income
 
C$211.30 mln
 
*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 "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 1 "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 Metro Inc is C$100.00, about 11.4% above its August 11 closing price of C$89.78
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Aug 12 - Canada's Maple Leaf Foods misses Q2 revenue estimates, reaffirms 2026 outlook 
Aug 12 - South Africa's Shoprite sees annual earnings rising up to 14.7%
Aug 11 - Canada's Pet Valu Q2 revenue slightly beats on higher retail, franchise sales

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.)