Reuters — Loblaw beat quarterly revenue and profit estimates on Thursday, driven by a near-fourfold jump in online sales, as stay-at-home Canadians used the retailer’s pickup and delivery services to stock up on bread, milk and eggs.
With consumers still limiting their trips outdoors due to the COVID-19 pandemic, the company said it would invest more to expand the pickup and delivery operation while aiming to reduce costs.
The move is part of a larger trend among Canadian retailers. Earlier this week, Walmart Canada said it plans to spend $3.5 billion over the next five years to strengthen its e-commerce business.
Read Also
Canada’s global trade gap narrows; U.S.-bound exports hit new low
Canada’s trade deficit narrowed in December even as its share of exports to the United States dropped to the lowest level on record, barring two months during the peak of the COVID-19 pandemic, data showed on Thursday.
A 280 per cent surge in e-commerce sales lifted Loblaw’s revenue about 7.4 per cent to $11.96 billion in the second quarter ended June 13. That beat analysts’ estimates of $11.87 billion, according to IBES data from Refinitiv .
Adjusted net earnings fell nearly 29 per cent to $266 million, or 74 cents per share, due to employee bonuses. Analysts had expected a profit of 71 cents per share.
The company’s food retail same-stores sales rose 10 per cent in the quarter.
— Reporting for Reuters by Uday Sampath in Bangalore.
