Loblaw Companies (TSE:L) Posts Quarterly Earnings Results

Loblaw Companies (TSE:L) issued its quarterly earnings results on Thursday. The company reported C$0.66 earnings per share for the quarter, FiscalAI reports. Loblaw Companies had a return on equity of 24.88% and a net margin of 4.29%.The company had revenue of C$15.05 billion during the quarter.

Here are the key takeaways from Loblaw Companies’ conference call:

• Strong Q2 performance: Revenue rose 4.1% to CAD 15.3 billion, adjusted EBITDA increased 5.1%, and adjusted diluted EPS grew 11.9% to CAD 0.66. Management maintained its outlook for high-single-digit adjusted EPS growth.
• Discount banners and store expansion remain key growth drivers. Maxi and No Frills delivered comparable sales growth near 4%, while Loblaw remains on track to open approximately 75 stores this year and expects a similar pace in 2027; newer stores are generating double-digit comparable sales growth as they mature.
• Pharmacy momentum is accelerating. Drug retail same-store sales increased 4.6%, with pharmacy and healthcare services up 7.5%; management expects generic GLP-1 drugs to drive higher volumes, revenue, gross profit dollars, and gross margin in 2027.
• Digital and international growth remained robust. E-commerce sales increased 19.3%, with PC Express delivery up more than 40%, while T&T’s first California store achieved Loblaw’s highest-ever first-week opening sales and two additional California locations are planned for 2026.
• Capital returns were increased. Loblaw repurchased CAD 552 million of shares in Q2 and raised its expected 2026 buyback total by CAD 200 million to CAD 2.1 billion, supported by strong free cash flow and balance-sheet capacity. The PC Financial sale also generated CAD 625 million in cash, though the company will recognize only one month of EQB earnings in Q3 due to reporting-calendar timing.

Loblaw Companies Price Performance

Shares of L opened at C$65.70 on Friday. The firm has a market cap of C$76.47 billion, a PE ratio of 28.57, a price-to-earnings-growth ratio of 3.23 and a beta of 0.13. Loblaw Companies has a 52-week low of C$52.92 and a 52-week high of C$69.59. The business’s 50 day moving average price is C$64.13 and its two-hundred day moving average price is C$63.58. The company has a debt-to-equity ratio of 153.41, a quick ratio of 0.68 and a current ratio of 1.09.

Loblaw Companies Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Wednesday, July 1st were paid a $0.1552 dividend. This represents a $0.62 annualized dividend and a yield of 0.9%. This is a boost from Loblaw Companies’s previous quarterly dividend of $0.14. The ex-dividend date of this dividend was Monday, June 15th. Loblaw Companies’s payout ratio is presently 24.53%.

Analyst Upgrades and Downgrades

L has been the topic of several analyst reports. TD Securities upgraded Loblaw Companies to a “strong-buy” rating in a report on Wednesday. Canadian Imperial Bank of Commerce lowered their price target on shares of Loblaw Companies from C$75.00 to C$69.00 in a report on Thursday, May 7th. BMO Capital Markets upgraded shares of Loblaw Companies from a “hold” rating to an “outperform” rating and boosted their price target for the stock from C$68.00 to C$70.00 in a research report on Monday, July 20th. Scotiabank downgraded shares of Loblaw Companies from an “outperform” rating to a “hold” rating and set a C$70.00 price target on the stock. in a research report on Thursday, April 9th. Finally, Scotia reduced their price objective on shares of Loblaw Companies from C$70.00 to C$64.00 and set a “sector perform” rating on the stock in a research note on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Loblaw Companies presently has an average rating of “Moderate Buy” and an average price target of C$69.50.

Insider Activity at Loblaw Companies

In other news, Director Nicholas Henn sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of C$67.00, for a total transaction of C$670,000.00. Also, insider Melanie Singh sold 4,820 shares of Loblaw Companies stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of C$66.72, for a total transaction of C$321,590.40. Company insiders own 53.77% of the company’s stock.

About Loblaw Companies

Loblaw is one of Canada’s largest grocery, pharmacy, and general merchandise retailers, operating the most expansive store footprint in Ontario and maintaining sizable presences in provinces like Quebec and British Columbia. Key grocery banners include Loblaw, No Frills, and Maxi, while its pharmaceutical operations are the product of its 2014 acquisition of Shoppers Drug Mart. The firm carries a robust private-label assortment, with top sellers like President’s Choice and No Name. In addition to its retail operations, Loblaw oversees a financial-services business, which provides credit card services and guaranteed investment certificates, and also operates its PC Optimum loyalty program.