Loblaw 2Q Profit, Revenue Rise as Discount Banners Drive Revenue Growth

By Adriano Marchese

Loblaw Cos. logged higher second-quarter profit and revenue as cost-conscious Canadians flocked to its discount banners, visiting stores more frequently and spending more per trip.

The Canadian grocer reported on Thursday net income of 751 million Canadian dollars ($534.6 million), or C$0.64 a share, up from C$714 million, or C$0.59 a share, in the comparable quarter a year ago.

Adjusted earnings were C$0.66 a share. According to FactSet, analysts were expecting C$0.65 a share.

Revenue rose to C$15.05 billion from C$14.46 billion, shy of analyst projections which expected a rise to C$15.07 billion. The company credits strength across the business, including contributions from new store openings.

Food retail same-store sales were up 1.6%, slower than the 3.5% a year earlier, while drug retail same-store sales up by 4.6%, compared with 4.1%.

Ecommerce sales rose by 19.3%.

Loblaw noted that its discount banners were the outperformers of the quarter yet again. Canadian consumers have been increasingly focusing on value, especially for their every day purchases, as household budgets have been squeezed in recent years by stubbornly high inflation, rising cost of living and higher interest rates.

Broadly, the company said consumers were coming into its stores more often and buying more per visit.

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

(END) Dow Jones Newswires

July 30, 2026 07:46 ET (11:46 GMT)