Empire Company Limited announced Thursday its financial results for the third quarter ended January 31, 2026. For the quarter, the Company recorded net (loss) earnings of $(385) million ($(1.68) per share) compared to $146 million ($0.62 per share) last year. For the quarter, the Company recorded adjusted net earnings of $164 million ($0.72 per share) compared to $146 million ($0.62 per share) last year, an increase of 12.3% (or 16.1% per share), it said.
“We delivered a solid third quarter, with adjusted EPS growth of 16%, driven by strong Full-Service performance and healthy results across all of our formats,” said Pierre St-Laurent, President & CEO, Empire. “Our performance reflects that customers are realizing value across our banners, with meaningful opportunity ahead to build on this momentum and deliver long-term growth.”
Highlights:
- Sales of $7,890 million, an increase of 2.1%
- Food sales increased by 3.0%; Same-store sales growth – food increased by 2.0%
- (Loss) Earnings per share of $(1.68) and adjusted EPS of $0.72
- Prior year EPS and adjusted EPS of $0.62
- As part of the Company’s e-commerce update, recognized impairment charges of $746 million
- Expects immediate benefits of approximately $95 million to annualized operating income
- Benefits are expected to begin in the fourth quarter of fiscal 2026 and reach run-rate in fiscal 2027
Empire said it is continuing to enhance data capabilities and deepen its understanding of its customers, allowing it to effectively capture emerging trends. The company said it aims to grow total adjusted EPS over the long-term through net earnings growth and share repurchases. The company added that it intends to continue improving sales, gross margin (excluding fuel) and adjusted EBITDA margin by focusing on priorities such as:
- Continued Focus on Stores
- Enhanced Focus on Digital and Data
- Efficiency and Cost Control
Food sales for the quarter increased by 3.0%, primarily driven by positive growth across the business, particularly in the Full-Service banners, the company’s national wholesale distribution network, and in the discount banner. Fuel sales for the quarter decreased by 11.4%, primarily driven by lower fuel prices due to the removal of the government carbon tax, explained Empire.
Gross profit for the quarter increased by 2.3%, primarily driven by higher food sales, strong performance and operational discipline in full-service and discount banners. Gross margin for the quarter remained consistent from prior year at 27.0%, said Empire.
“Since fiscal 2018, the Company has been expanding its FreshCo discount banner to Western Canada and its significant growth has been driven by store conversions and regional expansion. The value proposition and strong multicultural assortment, along with the addition of the Scene+ loyalty program, has supported the growth and expansion of the Discount banner,” said Empire.
“As at March 11, 2026, FreshCo has 51 stores operating in Western Canada and expects to open an additional two stores by the end of fiscal 2026. The Company expects to have opened 65 FreshCo stores in Western Canada over the next several years.”
For fiscal 2026, Empire said capital spend is expected to be approximately $850 million, with approximately half of this investment allocated to renovations and new store expansion (including a 1.1% increase in store footprint expansion from new stores), 25% allocated to IT and business development projects and the remainder allocated to logistics and sustainability. By the end of fiscal 2026, the company said it expects to complete the network renovations of approximately 20% to 25%, which began in fiscal 2024.
Empire is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate. With approximately $32 billion in annual sales and $17 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 129,000 people.
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