Empire Company Limited announced Thursday its financial results for the first quarter ended August 1, 2026. For the quarter, the Company recorded net earnings of $233 million ($1.04 per share) compared to $212 million ($0.91 per share) last year, an increase of 9.9% (or 14.3% on a per share basis).
The first quarter had sales of $8.475 billion, an increase of 2.6%; same-store sales growth; food increased by 1.2%; and operating income increased by 7.6%.
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 130,000 people.
“We delivered a strong first quarter, driven by disciplined execution across the business and progress against our strategic priorities,” said Pierre St-Laurent, President and CEO. “Our banners are competing effectively across the country, and our results reflect the strength of our operations, increasing productivity and efficiency, and our continued focus on delivering value for Canadians.”
The company 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 said.
“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.
“Through these four core priority focus areas, which will be enabled by Empire’s people, data and technology, the Company aims to grow total adjusted EPS over the long-term through sustained net earnings growth and share repurchases. Specifically, the Company intends to continue growing sales, expanding gross margin (excluding fuel), and generating operating leverage.”
Food sales for the quarter increased by 1.7% primarily driven by positive growth across the business, particularly in the Full-Service and Discount banners. Fuel sales for the quarter ended August 1, 2026 increased by 18.4% primarily driven by higher fuel prices, explained Empire.
Empire said it invested $220 million in capital expenditures(1) for the quarter ended August 1, 2026 (August 2, 2025 – $138 million) including store renovations, construction of new stores and investments in advanced analytics technology and other technology systems.
It said it is building a larger, stronger network by adding new stores to its network, optimizing its portfolio through store conversions, and pursuing strategic acquisitions.
“The Company is continuing to expand its FreshCo discount banner across the country. On August 20, 2026, the Company opened its first two FreshCo stores in Atlantic Canada and expects to open 13 more stores across Western Canada, Ontario and Atlantic Canada in fiscal 2027. The FreshCo discount banner provides strong value proposition and robust multicultural assortment, providing value and choice to better serve our customers, it said.
“During the quarter ended May 2, 2026, the Company, and its wholly-owned subsidiary Sobeys, announced it has entered into an agreement to acquire Mayrand Food Group Inc., a long-established Québec food retailer operating four large-format locations across the Greater Montréal Area. The Company received the required court approval and regulatory approval for the transaction, which closed during the first quarter of fiscal 2027. For further details, see Note 14 of the Company’s unaudited Interim Condensed Consolidated Financial Statements for the quarter ended August 1, 2026.
“Subsequent to the quarter ended August 1, 2026, the Company announced its acquisition of nine Morelli’s pharmacies currently operating within Longo’s stores in the Toronto and Hamilton areas. The plan is to convert these nine sites to Longo’s Pharmacy locations. The transaction remains subject to customary closing conditions, including approval from the Ontario College of Pharmacists, and is expected to close during the second quarter of fiscal 2027.”
Empire said its e-commerce platforms Voilà (including curbside pickup), IGA.net, ThriftyFoods.com and partnerships with Instacart, Uber Eats, and DoorDash generated a combined sales increase of 11.3% compared to the same quarter in the prior year. The increase is primarily driven by growth in third-party partnership sales and continued sales growth for Voilà.
Empire said the outcome of its e-commerce review is expected to improve overall e-commerce financial performance with improvements in annualized operating income of approximately $95 million, which began in the fourth quarter of fiscal 2026, has continued in the first quarter of fiscal 2027 and will continue into fiscal 2027 and beyond. The company said it is intensifying its focus on increasing customer engagement, cost discipline, operational efficiencies and accelerating execution.
“For fiscal 2027, capital spend is expected to be approximately $850 million, with approximately half of this investment allocated to renovations and new store expansion (including approximately 1.5% growth in store footprint expansion driven by new stores), approximately 25% allocated to IT and business development projects and the remainder allocated largely to logistics and sustainability. The Company expects to renovate approximately 20% to 25% of its store network between fiscal 2027 and fiscal 2029,” it explained.
“Continued uncertainty related to the timing and extent of imposition of future tariffs by the United States government and the risk of potential retaliatory tariffs by the Canadian government could create volatility in the Canadian economy, including higher future costs for importing goods, potentially contributing to higher inflation if increased costs are passed to Canadian consumers. The timing and duration of increased tariffs create financial uncertainty for Canadian companies, and may lead to potential job losses, reduced economic activity, and weakening confidence in the future, and could disrupt supplier relationships and the supply chain, and this may increase the volatility in the Company’s operational results.”
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