Empire Company Limited announced its financial results for the fourth quarter and full year ended May 2, 2026. For the quarter, the company said it recorded net earnings and adjusted net earnings of $212 million ($0.94 per share) compared to $173 million ($0.74 per share) last year, an increase of 22.5% (or 27.0% on a per share basis).
Empire reported that sales reached $31.95 billion in its fiscal year and $7.8 billion in Q4.
Since fiscal 2018, the company said it 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 across Ontario and Western Canada. In fiscal 2027, the company will open its first FreshCo stores in Atlantic Canada,” it said.
Empire Company Limited 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 130,000 people.
As at June 17, 2026, FreshCo has a total of 161 FreshCo stores, 53 stores operating in Western Canada and 108 stores operating in Ontario. The company expects to have opened 65 FreshCo stores in Western Canada over the next couple of years. In fiscal 2027, the Company expects to open approximately 15 new FreshCo stores across Western Canada, Ontario and Atlantic Canada.
“We delivered a solid finish to fiscal 2026, with adjusted EPS growth of 27 per cent, reflecting disciplined execution and continued progress against our strategic priorities,” said Pierre St-Laurent, President & CEO, Empire. “As we enter fiscal 2027, our focus remains on driving growth within our existing network, advancing key growth engines, and continuing to elevate our value proposition for customers in what remains a challenging economic environment.”
Empire said its ambition is to be the best retailer in Canada, providing quality and value with differentiated offerings and seamless experiences, with a strong focus on serving local cultures in every community.
“Empire recently launched its new three-year corporate strategy which is anchored to four core priority focus areas: Customers, Stores, Growth, and Cost Efficiency. Empire’s belief is that long-term success is driven not solely by scale or market presence, but by the quality of the relationships the teammates in stores build with customers and the experiences they consistently deliver,” it explained.
“Technology is a critical enabler of Empire’s strategy. Advanced analytics, artificial intelligence, and modern digital platforms are being applied thoughtfully across the business to enhance the customer experience, support better decision making and improve how Empire’s teams work every day.”
Food sales for the quarter increased by 2.1%, primarily driven by positive growth across the business, particularly in the Full-Service and Discount banners and the Company’s national wholesale distribution network, said Empire, adding that fuel sales for the quarter increased by 4.9%, primarily driven by higher fuel prices.
Food sales for the fiscal year increased by 2.8% 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 fiscal year decreased by 6.9% driven by lower fuel prices due to the removal of the government carbon tax.
Empire said gross profit for the quarter increased by 2.0% primarily driven by higher food sales, strong performance and operational discipline in Full-Service and Discount banners. Gross margin for the quarter remained consistent with the prior year at 27.6%. Excluding the mix impact of fuel sales, gross margin for the quarter increased by 1 basis point.
It said gross profit for the fiscal year increased by 3.4% primarily driven by higher food sales and strong performance and operational discipline in Full-Service and Discount banners. Gross margin for the fiscal year increased to 27.1% from 26.8% in the prior year, primarily driven by strong performance in Full-Service and Discount banners as a result of disciplined execution and several targeted efficiencies in our stores, including initiatives aimed at inventory control and reducing shrink, and better promotional mix control and the mix impact of lower fuel sales, partially offset by the mix impact of higher wholesale distribution sales, it explained.
The company said it invested $260 million and $842 million in capital expenditures for the quarter and fiscal year (May 3, 2025 – $233 million and $721 million), respectively including renovations and construction of new stores, investments in advanced analytics technology and other technology systems.
“In fiscal 2027, capital expenditures are expected to be approximately $850 million, with approximately 50% of this investment allocated to store renovations and new store expansion (including approximately 1.5% growth in store footprint expansion driven by new stores), approximately 25% on IT projects and business development projects and the remainder allocated largely to logistics and sustainability. The company is planning to renovate approximately 20% to 25% of the network between fiscal 2027 and fiscal 2029,” said Empire.
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