Loblaw Companies (TSE:L) Announces Quarterly Earnings Results

Loblaw Companies (TSE:L) posted its quarterly earnings results on Thursday. The company reported C$0.66 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$15.05 billion during the quarter. Loblaw Companies had a net margin of 4.32% and a return on equity of 25.25%.

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

Loblaw Companies stock opened at C$65.81 on Friday. Loblaw Companies has a 52 week low of C$52.92 and a 52 week high of C$69.59. The company’s 50 day moving average price is C$64.22 and its two-hundred day moving average price is C$63.59. The stock has a market cap of C$76.60 billion, a P/E ratio of 28.61, a P/E/G ratio of 3.23 and a beta of 0.13. The company has a quick ratio of 0.68, a current ratio of 1.06 and a debt-to-equity ratio of 151.15.

Loblaw Companies Increases Dividend

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

Key Stories Impacting Loblaw Companies

Here are the key news stories impacting Loblaw Companies this week:

• Positive Sentiment: Broad analyst target increases support the stock: BMO Capital Markets raised its target to C$73 from C$70 and kept an “outperform” rating. National Bank Financial lifted its target to C$70 from C$67, while Desjardins increased its target to C$72 from C$70 and assigned a “buy” rating. Scotia raised its target to C$67 from C$64, maintaining a “sector perform” rating. The revisions imply limited to double-digit upside from recent levels. Analyst rating updates
• Positive Sentiment: Discount-store expansion remains a growth catalyst: Loblaw plans approximately 75 store openings in 2027, as management describes consumers’ shift toward discount grocery as a long-term trend. The expansion could support market-share gains and sustained revenue growth. Loblaw discount expansion plans
• Positive Sentiment: Quarterly results provide fundamental support: Loblaw reported C$15.05 billion in quarterly revenue and C$0.66 in earnings per share, with a 24.88% return on equity. TD Securities also upgraded the stock to “strong buy,” adding to the favorable analyst sentiment. Loblaw quarterly results
• Neutral Sentiment: Consumers remain highly price-sensitive: Management said shoppers are turning to frozen produce to manage elevated food prices. This reinforces demand for Loblaw’s discount offerings but may limit consumers’ willingness to purchase higher-margin products. Loblaw consumer spending trends

Insider Buying and Selling

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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on L shares. Desjardins raised their price objective on shares of Loblaw Companies from C$70.00 to C$72.00 and gave the company a “buy” rating in a research note on Friday. TD Securities upgraded Loblaw Companies to a “strong-buy” rating in a research note on Wednesday. BMO Capital Markets boosted their price objective on Loblaw Companies from C$70.00 to C$73.00 and gave the stock an “outperform” rating in a report on Friday. Scotiabank downgraded Loblaw Companies from an “outperform” rating to a “hold” rating and set a C$70.00 price objective for the company. in a research note on Thursday, April 9th. Finally, National Bank Financial raised their target price on Loblaw Companies from C$67.00 to C$70.00 and gave the company an “outperform” rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Loblaw Companies presently has a consensus rating of “Moderate Buy” and a consensus target price of C$71.00.

Loblaw Companies Company Profile

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.