Shares in Canadian retailer Loblaw fell today (25 July) after the company, which had warned of lower earnings in 2012, reported a 21% drop in first-half profits.
Loblaw said in February spending on its supply chain and market positioning would put pressure on earnings this year.
Go deeper with GlobalData
It reported today a 20.6% fall in first-half net profit to C$285m. Operating income was down 18.4% at C$529m.
Revenue increased 1.1% to C$14.31bn but same-store sales fell 0.3% in the 24 weeks to 16 June.
Nevertheless, Loblaw insisted its plans are paying off. Executive chairman Galen Weston said: “We are beginning to gain traction on the top-line, particularly in our core food and drug businesses, as we continued our disciplined approach to improving our customer proposition. We remain confident that our ongoing investments in infrastructure, including the completion of our IT implementation, will enable efficiencies and expense leverage to drive future earnings growth.”
Loblaw’s shares were down 2.07% at C$31.26 at 14:18 ET today.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
