Loblaw 4Q Profit, Revenue Rise as Value-Seeking Shoppers Boost Traffic

By Adriano Marchese

Loblaw logged higher fourth-quarter profit and as value-seeking shoppers visited more often and spent more, lifting revenue.

The Canadian grocer on Wednesday posted a higher net income of 656 million Canadian dollars ($478.8 million), or C$0.55 a share, up from C$462 million, or C$0.38 a share, in the comparable quarter a year earlier.

The recent quarter ended Jan. 3 covered 13 weeks, compared with the prior year's fourth quarter, which ended Dec. 28 and spanned only 12 weeks.

Adjusted earnings were C$0.67 a share. According to FactSet, analysts were expecting C$0.66 a share.

Revenue rose to C$16.38 billion from C$14.73 billion, but missed analyst forecasts of a greater rise to C$16.77 billion. Food-retail same-store sales rose 1.5%, while its pharmacy business rose 3.9% to C$4.95 billion.

Value continued to be a consumer trend in the quarter, which drove customer visits up in the quarter, with shoppers buying more per visit as well. This helped it gain market share across its banners, it said. The company also said that ecommerce growth was strong, as omnichannel shopping remained a priority.

Loblaw expanded its hard-discount network in the quarter, adding 15 No Frills and Maxi stores and increasing access to lower-priced groceries.

Looking ahead to the full year, the company expects the retail business to grow earnings faster than sales, with adjusted net earnings growth estimated in the high single digits.

Earlier in the week, Loblaw laid out its C$2.4 billion investment plan which will include building dozens of new stores, especially of its value banners, while also renovating nearly 200 existing locations this year.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 25, 2026 07:22 ET (12:22 GMT)