Loblaw Companies Limited announced Wednesday its unaudited financial results for the first quarter ended March 28, 2026.
Loblaw said it delivered a strong first quarter with positive sales momentum. Continued same-store sales growth in Food Retail, increased customer traffic, e-commerce sales growth, and new store openings drove topline performance.
It said the company’s discount banners outperformed again, demonstrating that Canadians are responding well to greater access to Maxi and NoFrills stores. E-commerce sales were led by growth in PC Express delivery, plus the successful integration of third-party delivery options. In Drug Retail, growth continued to reflect positive trends in prescription volumes, specialty drugs, and beauty categories. Drug Retail performance underscored the strength of the Company’s healthcare services and commitment to meeting the evolving needs of Canadians, added the company.
Loblaw said continued its focus on strategic expansion and innovation during the quarter, including opening five Hard Discount stores and eight drug stores, bringing convenient access to nutritious food and essential healthcare services to more communities.
“We are very pleased that our strategic investments in opening new stores, and our focus on value, are resonating with Canadians and helping us to deliver strong financial results,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “From the breadth of our banners and the continued growth of PC ExpressTM delivery, to the consistent strength of our pharmacy services, we are demonstrating our commitment to being there when and where our customers need us most.”
2026 FIRST QUARTER HIGHLIGHTS
- Retail revenue was $14,484 million, an increase of $580 million, or 4.2%. Retail revenue increased by 4.5%, excluding the impact of revenue related to Wellwise by Shoppers and the Theodore & Pringle optical business.
- Food Retail (Loblaw) same-store sales increased by 2.4%.
- Drug Retail (Shoppers Drug Mart) same-store sales increased by 4.1%, with pharmacy and healthcare services same-store sales growth of 6.7% and front store same-store sales growth of 1.0%.
- E-commerce sales increased by 20.3%.
- Revenue (including Retail and PC Financial) was $14,724 million, an increase of $589 million, or 4.2%.
- Retail gross profit percentage of 31.4% was stable, decreasing by 10 basis points, primarily driven by changes in sales mix in Drug Retail categories, partially offset by continued improvements in shrink. Food Retail gross margin was flat.
- Retail operating income was $1,010 million, an increase of $172 million, or 20.5%.
- Retail adjusted EBITDA was $1,607 million, an increase of $98 million, or 6.5%.
- Selling, general and administrative expenses as a percentage of sales was 20.3%, a decrease of 40 basis points.
- Net earnings available to common shareholders of the Company were $594 million, an increase of $91 million or 18.1%. Diluted net earnings per common share were $0.50, an increase of $0.08, or 19.0%. The increase included the impact of lower amortization related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart, which are now fully amortized.
- Adjusted net earnings available to common shareholders of the Company were $609 million, an increase of $39 million, or 6.8%. Adjusted diluted net earnings per common share were $0.52, an increase of $0.05, or 10.6%.
- Repurchased for cancellation 10.2 million common shares at a cost of $648 million. Gross capital investments were $312 million.
- Free cash flow from Retail was $432 million, an increase of $729 million.
- In connection with the sale of PC Financial, Loblaw expects to receive approximately $600 million in cash, representing the release of excess capital, cash consideration from EQB Inc., and collection of certain commodity tax receivables.
- Quarterly common share dividend increased by 10%, marking the fifteenth consecutive year of dividend increases.
More from Retail Insider:
