Canadian grocery retailer Loblaw today (22 July) posted an almost 7% drop in second-quarter net earnings due to investment in infrastructure and IT.
Loblaw’s net earnings for the three months to the end of June fell 6.7% to C$180m (US$172.8m). Operating profit, however, reached C$330m, up 1.9%.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The retailer’s turnover increased 1.2% to C$7.32bn but comparable-store sales dipped 0.3%.
Loblaw is currently in the midst of a company-wide restructuring plan, which includes IT, supply chain, distribution and stores, involving C$1bn of investment in 2010.
Loblaw executive chairman Galen Weston said: “We are now in the critical period of heightened risk for the infrastructure and information technology components of the plan. As previously stated, we expect investments associated with this to continue to negatively impact our operating income during this period”.
The retailer said, meanwhile, that its earnings were positively impacted by the acquisition of Asian supermarket chain T&T Supermarket which it acquired in the third quarter of 2009.
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 GlobalData
