Canadian grocer raises full-year operating income forecast
Canadian retailer Loblaw today reported a 2 percent increase in revenue for the second quarter, thanks in part to improved same-store sales in clothing and food. The company also achieved improved earnings and raised its full-year operating income forecast.
Loblaw, which is Canada's largest grocer, sees itself as being set for a "powerful new chapter" following its announcement last week that it will acquire Canadian drug chain Shoppers Drug Mart. That transaction is expected to be completed within six to seven months.
Discussing Loblaw's second-quarter performance, chief executive Galen G. Weston said, "The investments we have made to advance our customer proposition once again translated into improved same-store sales performance in an intense competitive environment. At the same time, better mix and good expense management delivered improved earnings. To reflect our year-to-date performance, we are raising our outlook to expect mid-single digit operating income growth for fiscal 2013."
Loblaw's revenue for the second quarter totaled $7.5 million. Retail sales grew 1.9 percent, while same-store sales were up 1.1 percent, compared to the second quarter of 2012. The company's profit rose 14 percent.