-- Loblaw Companies (L.TO) reported higher first quarter adjusted earnings and revenue, even if both were flat to lower against expectations, while it raised its dividend by 10% and guided on its growth expectations for fiscal 2026.
Adjusted net income, which excludes most one-time items, rose 6.8% to $609 million, or $0.52 per diluted share, from $570 million, or $0.47 per diluted share, in the prior year period. The result met analysts expectations of $0.52 per share, according to FactSet.
Revenue advanced 4.2% to $14.5 billion, over the same period, just below the $14.6 billion expected by analysts. Loblaw noted that food retail (Loblaw) same-store sales increased by 2.4%, while drug retail (Shoppers Drug Mart) same-store sales increased by 4.1%. E-commerce sales jumped by 20.3%.
In fiscal 2026, Loblaw is guiding to high single-digits growth for adjusted net earnings per share, and for its Retail business to grow earnings faster than sales. It will invest $2.4 billion in gross capital expenditures in its stores and distribution centres.
Loblaw will pay its higher dividend of $0.155 per share (from $0.141) on July 1, to shareholders of record on June 15, the 15th consecutive year of dividend increases.
The company separately announced the Toronto Stock Exchange has accepted its intention to buy back up to 58.1 million shares from May 6, for one year. Loblaw bought back 36.9 million shares under its prior NCIB at a weighted average price of $59.85.
Loblaw shares closed up $1.18, to $63.16 on Tuesday on the Toronto Stock Exchange.