July 25 (Reuters) - Canadian retailer Loblaw Companies ( LBLCF )
missed analysts' expectations for second-quarter revenue
on Thursday, hurt by soft demand for some household items and
non-essential products such as apparel.
The company said the decline in front-store same-store sales
was primarily driven by lower sales of food and household items
and the decision to exit certain low-margin electronics
categories.
Customers in Canada have been trimming expenses even on
essential items as high housing and interest rates continued to
eat into their income.
The country's retail sales fell in May mainly due to a drop
in sales at supermarkets and grocery retailers, according to
Statistics Canada.
But many deal-hunting consumers have helped boost food sales
growth at Loblaw's ( LBLCF ) discount banners such as No Frills and Maxi.
The company's revenue rose 1.5% to C$13.95 billion ($10.08
billion) but fell short of analysts' average estimate of C$14.17
billion, according to LSEG data.
Net income fell to C$457 million, or C$1.48 per share, in
the second quarter from C$508 million, or $1.58 per share, a
year earlier.
($1 = 1.3840 Canadian dollars)