Loblaw Reports Strong Q4 Results
Loblaw Companies Limited (TSX:L) has reported robust financial results for the fourth quarter of 2025, with a notable increase in both profit and revenue compared to the previous year. The company earned a profit of C$656 million, or 55 cents per diluted share, for the 13-week period ending January 3, 2026, up from C$462 million, or 38 cents per diluted share, in the same quarter of 2024. Total revenue for the quarter reached C$16.38 billion, reflecting an 11.3% increase from C$14.73 billion, aided by an extra week in the reporting period.
Why It Matters
The strong performance is attributed to higher customer traffic and a 19.6% growth in e-commerce sales. On a comparable 12-week basis, revenue grew by 3.5%. Loblaw’s food retail same-store sales increased by 1.5%, while drug retail same-store sales rose by 3.9%. The company also announced plans for significant business initiatives, including the opening of 77 new stores and advancements in supply-chain automation, alongside the planned sale of its PC Financial business to EQB Inc.
What’s Next for Loblaws Stock?
Despite the positive earnings report, Loblaws stock experienced a decline of 2.5% during mid-day trading, closing at C$65.81 after opening at C$66.00. Analysts have mixed views on the stock, with several firms raising their price targets, indicating a potential for growth. Canadian Imperial Bank of Commerce increased its price objective from C$58.50 to C$67.00, while TD Securities raised theirs from C$65.00 to C$75.00, maintaining a ‘buy’ rating. The outlook for Loblaw suggests that the company expects its retail business to grow earnings faster than sales, with adjusted net earnings projected to increase in the high single-digits.
