Canada's Empire Q3 sales slightly miss estimates on lower fuel prices

Overview

• Canada food retailer's fiscal Q3 sales rose 2.1% but slightly missed analyst expectations

• Adjusted EPS for fiscal Q3 increased and beat analyst expectations

• Company recognized C$746 mln e-commerce impairment, expects C$95 mln annualized income benefit

Outlook

• Empire expects annualized operating income improvement of about C$95 mln starting in Q4 fiscal 2026

• Company forecasts fiscal 2026 capital expenditures at about C$850 mln

• Empire expects fiscal 2026 Other income plus Share of earnings from investments, at equity, of C$120 mln to C$140 mln

Result Drivers

• FOOD SALES GROWTH - Co said Q3 food sales rose 3.0%, driven by growth in Full-Service banners, wholesale distribution, and Discount banner

• E-COMMERCE IMPAIRMENT - Co recognized C$746 mln impairment after closing Calgary fulfillment center and pausing Vancouver development, expects C$95 mln annualized income benefit

• FUEL SALES DECLINE - Fuel sales fell 11.4% in Q3, mainly due to lower fuel prices after removal of government carbon tax

Company press release: ID:nCNWNx42ya

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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