Despite competition in the industry, both Loblaw Companies Limited and Metro Inc. have reported strong numbers for their most recent fiscal quarters.
The chains each performed well in terms of revenue, same-store sales and diluted earnings per share, as well as on the key tonnage metric, which excludes price changes.
Loblaw’s revenue rose 1.4 per cent in its third quarter, with profits beating analysts’ estimates following internal cost cutting. Loblaw’s CEO Galen G. Weston notes that “customers responded well to lowered prices” and that the company “continue(s) to drive the top line.” Moreover, Weston notes that while competition was “intense” this quarter, the company still saw an improvement in store traffic and basket size.
Metro Inc. also had a successful quarter, with its 4Q sales up 3.4 per cent to $2928.9 million. The company’s net earnings were up 10.1 per cent to $145.0 million, and same-store sales were up 2.8 per cent.
