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Loblaw misses quarterly revenue estimates on soft household products demand
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Loblaw misses quarterly revenue estimates on soft household products demand
Jul 25, 2024 4:16 AM

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)

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