- Loblaw (TSX:L) reported strong Q4 results, with comparable 12‑week revenue up 3.5 per cent, higher customer traffic, and 19.6 per cent e‑commerce growth
- Full‑year 2025 earnings increased, including a 23.8 per cent rise in net earnings and 10.5 per cent growth in adjusted net earnings
- The company advanced major business initiatives, including 77 new stores, supply‑chain automation, and the planned sale of PC Financial to EQB Inc.
- Loblaw stock (TSX:L) opened trading at C$66.00
Loblaw Co. Ltd. (TSX:L, OTC:LOBLY) reported stronger q4 results for the period ended January 3, 2026, supported by higher customer traffic, e‑commerce growth, and continued expansion across its retail banners.
The company said the quarter capped a year of steady financial and operational progress, including new store openings, supply‑chain investments, and the pending sale of its PC Financial business.
Because Q4 2025 contained 13 weeks compared with 12 weeks in the prior year, Loblaw provided both reported and comparable 12‑week figures for year‑over‑year analysis.
Q4 performance
In a news release, the grocery chain reported that retail revenue reached C$16.38 billion, rising 11.3 per cent from a year earlier, including an estimated C$1.14 billion related to the extra week. On a comparable 12‑week basis, revenue grew 3.5 per cent.
The company said customer visits increased across its banners as Canadians sought value, quality, and convenience. This contributed to market share gains in both food and drug retail divisions. E‑commerce sales climbed 19.6 per cent, reflecting continued demand for online ordering, rapid delivery, and expanded prepared-meal and PC® product offerings.
Food retail same‑store sales increased 1.5 per cent, while drug retail same‑store sales rose 3.9 per cent, led by strength in pharmacy, specialty prescriptions, and over‑the‑counter categories. Beauty products also performed well.
Retail gross profit was 30.8 per cent, down slightly from last year, though on a comparable 12‑week basis gross margin improved by 10 basis points. Retail operating income rose 43 per cent to C$1.13 billion, and adjusted retail EBITDA increased 11.3 per cent to C$1.78 billion.
Net earnings available to common shareholders from continuing operations were C$656 million, up 42 per cent. Adjusted diluted net earnings per common share rose 21.8 per cent to $0.67, and increased 10.9 per cent on a comparable 12‑week basis.
During the quarter, Loblaw opened 30 stores and closed five, bringing total retail square footage to 73.3 million, up 1.8 per cent from the prior year. Capital investments totaled C$677 million, and the company repurchased 9.8 million common shares for C$592 million.
Discontinued operations: PC Financial
Loblaw’s financial results reflect PC Financial as discontinued operations following the company’s December 2025 agreement to sell President’s Choice Bank and related entities to EQB Inc. The deal is expected to close in 2026, pending regulatory approval.
Revenue from discontinued operations was C$230 million in the fourth quarter, up 3.1 per cent, while net earnings from discontinued operations rose to C$45 million, largely due to the absence of a prior‑year loyalty‑liability charge and improved credit‑loss performance.
Full‑year 2025 results
For the full year, retail revenue was C$63.90 billion, an increase of 6.3 per cent. On a comparable 52‑week basis, revenue grew 4.4 per cent. Food retail same‑store sales rose 2.3 per cent, and drug retail same‑store sales increased 3.9 per cent. Annual e‑commerce sales reached C$4.6 billion, up 18.1 per cent.
Full‑year net earnings available to common shareholders were C$2.67 billion, up 23.8 per cent, while adjusted net earnings increased 10.5 per cent to C$2.91 billion. Adjusted diluted earnings per share rose 13.6 per cent to C$2.43.
Capital investments for the year were C$1.79 billion, and the company repurchased 34.8 million shares at a cost of C$1.88 billion. Loblaw also completed a four‑for‑one stock split in August 2025.
Operationally, the company opened 77 new stores across its banners and advanced its supply‑chain modernization strategy, including commissioning the first of two automated one‑million‑square‑foot distribution centres.
Operational priorities and outlook
Loblaw said it intends to focus on retail execution, targeted growth initiatives, and long‑term investments in 2026. The company plans to open about 70 new food and drug stores and 30 additional pharmacy care clinics over the coming year.
Capital expenditures are expected to reach approximately C$2.4 billion, including continued work on automated distribution facilities and the expansion of T&T Supermarkets in the United States. The company also plans to continue allocating significant free cash flow toward share repurchases.
Excluding the pending sale of PC Financial and the extra week in 2025, Loblaw expects high‑single‑digit growth in adjusted earnings per share and retail earnings growth that outpaces sales.
Loblaw stock (TSX:L) opened trading around 3 per cent lower at C$66.00 and has risen nearly 40 per cent since this time last year.
Smiles in the aisles for you … wait, wrong company ….
Loblaw Companies is Canada’s largest food retailer, with more than 2,400 stores operating under 22 regional and market segment banners.
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