Loblaw, the Canadian retailer, today (24 July) booked improving sales and margins for the second quarter of 2009.
Go deeper with GlobalData
The grocer, which also announced the acquisition of Canada’s largest Asian retailer T&T Supermarket, reported a 2.5% rise in same-store sales for the three months to 20 June. Same-store sales in the first six months of the year was up 2.4%.
Net earnings jumped almost 38% to C$193m (US$178.3m) during the second quarter. Operating profit climbed 22.7% to C$324m, with quarterly operating margin standing at 4.5%. First-half operating margin was 3.9%. Turnover grew 2.8% to C$7.23bn.
Nevertheless, executive chairman Galen Weston was cautious about the next six months.
“This quarter’s improvement in earnings was largely cost- and gross margin-driven,” Weston said. “This is a trend that we do not expect to continue.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHe added: “We have consistently said that the second half of this year would be by far the toughest, and with market volumes in decline, inflation dropping off, intensified competitive activity and a substantial ramp up in our infrastructure and renovation programmes, we expect sales and margins to be significantly challenged.”
