Loblaw’s profit for the first quarter of 2019 narrowly missed expectations, but revenue was above expectations.
Same store grocery sales numbers for the quarter were up two per cent instead of the expected 2.4 per cent – a “soft” result, said BNN analyst Paul Bagnell, interviewed on BNN Bloomberg. Shoppers Drug Mart did better at 2.2 per cent: 3.1 per cent when only front-of-store sales are considered.
Profit was $198 million or 53 cents per share, well down from $377 million or 98 cents per share in Q1 2018. Revenue for the quarter was $10.66 billion, up from $10.34 billion in Q1 2018. Bagnell did note that the first quarter was ‘noisy,’ with comparative results affected by Loblaw’s sale in Q1 2018 of its interest in the Choice Properties REIT.