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Canada's Loblaw misses out on quarterly revenue estimates on weak demand for family products

Canadian supermarket merchant Loblaw Companies missed thirdquarter revenue estimates on Wednesday, injured by a downturn in the demand for its inessential products such as home items and electronics.

Customers have been keeping back on discretionary costs as costs remain fairly high in spite of inflationary patterns declining, harming need for higher-end brands provided by sellers such as Loblaw.

However, need for worth offers has assisted Loblaw's. discount rate banners such as No Frills and Maxi.

Drug front store sales reflected ongoing strength in. the appeal classification however were pressed by the Business's exit. from certain low margin electronics classifications and lower. customer spend on benefit items, the business stated.

Same-store sales in the food retail section grew 0.5% in. the 3rd quarter, compared to 4.5% a year ago.

The company's quarterly profits rose to C$ 18.54 billion. ($ 13.28 billion) from C$ 18.27 billion a year earlier, compared. with analysts' typical estimates of C$ 18.65 billion, according. to information assembled by LSEG.

Loblaw's adjusted revenues per share was C$ 2.50 in the. 3rd quarter, topping expectations of C$ 2.45.

(source: Reuters)