BRAMPTON, Ontario, Feb. 25, 2026 (GLOBE NEWSWIRE) — Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the fourth quarter ended January 3, 2026(1).
Unless otherwise indicated, all comparisons of results for the fourth quarter of 2025 (13 weeks ended January 3, 2026) are against results for the fourth quarter of 2024 (12 weeks ended December 28, 2024) and all comparisons of results for the full-year of 2025 (53 weeks ended January 3, 2026) are against the results for the full-year of 2024 (52 weeks ended December 28, 2024).
Loblaw delivered solid fourth quarter results, demonstrating strong execution against its strategic plan. On a comparable 12-week basis, revenue increased 3.5%, gross profit percentage improved by 10 basis points, SG&A as a percentage of sales was flat and adjusted net earnings per common share increased 10.9%. Customer visits increased in the fourth quarter as Canadians recognized the differentiated value, quality, service, and convenience the Company offers across its nationwide network. This increased traffic resulted in continued market share gains across its banners. E-commerce sales experienced robust growth, as omnichannel convenience remained a customer priority. The Company continued to expand its offering, catering to customer demand for rapid delivery, prepared meals, and favourite PC® products. The Company continued to focus on providing value to Canadians by expanding its Hard Discount network this quarter, opening 15 No Frills® and Maxi® stores, providing convenient access to nutritious food at great prices for more Canadian families. The Company’s Super Market banners, including high-performing Fortinos and T&T® Supermarkets, attracted shoppers seeking full-service shopping with a focus on Canadian products, multicultural offerings, and innovative PC® Insider Report™ products, enhanced by personalized PC Optimum™ loyalty offers and competitive prices. Food Retail same-store sales growth steadily improved through the quarter. Across Shoppers Drug Mart and Pharmaprix(MD), the Company continued to demonstrate momentum in front store, driven by strong beauty and over-the-counter (“OTC”) sales. Pharmacy and healthcare services was again led by strong growth in specialty prescriptions and healthcare services.
The Company’s performance in the fourth quarter capped a successful 2025. Loblaw continued to invest in its future growth by opening 77 new stores across its banners, and successfully ramping the first of two automated, one million square foot distribution centres. The previously announced sale of PC Financial to EQ Bank will streamline the Company’s operations, and the associated long-term strategic relationship as the exclusive financial partner of the PC Optimum loyalty program is expected to result in expanded growth of high-value, loyalty-based financial services customers. 2025 also marked significant growth rates in the Company’s margin accretive logistics as a service, retail media and Lifemark businesses. Loblaw is confident that its best-in-class assets, resilient business model and investments for the future position it well to meet the evolving needs of Canadians, creating a foundation for consistent and sustainable growth.
“We are pleased to deliver another year of consistent operational and financial performance, reflecting our continuous focus on retail excellence, strategic execution, leading digital engagement and adoption of Agentic AI,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our success reflects our commitment to being where our customers need us most, delivering unparalleled value and convenience across our many banners, combined with exceptional service from our dedicated colleagues coast-to-coast.”
2025 FOURTH QUARTER HIGHLIGHTS
As announced on December 3, 2025, the Company entered into an agreement with EQB Inc. (“EQB”) pursuant to which EQB will acquire President’s Choice Bank (“PC Bank”) and certain other affiliated entities (collectively, “PC Financial”) (the “Sale of PC Financial”). Closing is expected to occur within calendar 2026, subject to customary closing conditions and regulatory approvals. Accordingly, PC Financial results are presented as discontinued operations. Retail represents the continuing operations of the Company.
- Retail revenue was $16,382 million, an increase of $1,657 million, or 11.3%.
- On a 12-week comparable basis, revenue increased by 3.5%.
- Food Retail (Loblaw) same-store sales(5) increased by 1.5%.
- Drug Retail (Shoppers Drug Mart) same-store sales(5) increased by 3.9%, with pharmacy and healthcare services same-store sales growth(5) of 5.6% and front store same-store sales growth(5) of 2.2%.
- E-commerce sales(5) increased by 19.6%.
- Retail gross profit percentage(2) was 30.8%, a decrease of 10 basis points.
- On a 12-week comparable basis, gross profit percentage(2) was 31.0%, an increase of 10 basis points.
- Retail operating income was $1,134 million, an increase of $341 million, or 43.0%.
- Retail adjusted EBITDA(2) was $1,775 million, an increase of $180 million, or 11.3%.
- Selling, general and administrative expenses (“SG&A”) as a percentage of sales was 20.0%, a decrease of 10 basis points. On a 12-week comparable basis, SG&A as a percentage of sales was flat at 20.1%.
- Net earnings available to common shareholders of the Company were $656 million, an increase of $194 million or 42.0%. Diluted net earnings per common share were $0.55, an increase of $0.17, or 44.7%.
- Adjusted net earnings available to common shareholders of the Company(2) were $794 million, an increase of $125 million, or 18.7%. Adjusted diluted net earnings per common share(2) were $0.67, an increase of $0.12 or 21.8%.
- On a 12-week comparable basis, adjusted diluted net earnings per common share(2) increased by 10.9%.
- Net capital investments were $677 million, which reflects gross capital investments of $722 million, net of proceeds from property disposals of $45 million.
- Repurchased for cancellation 9.8 million common shares at a cost of $592 million. Free cash flow(2) from Retail
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