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Canadian consumers wary due to US tariffs, seek

lower-priced

items

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Loblaw's ( LBLCF ) same-store sales rise in food and drug retail

segments

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Reaffirms annual adjusted net earnings per share forecast

April 30 (Reuters) - Canadian retailer Loblaw ( LBLCF )

exceeded analysts' expectations for first-quarter revenue and

profit on Wednesday, driven by robust demand at its pharmacy

stores and discount banners, Maxi and No Frills, for everyday

essentials.

Consumers in Canada have become more wary with their

spending as U.S. President Donald Trump's tariffs have increased

worries about rising inflation that could further tighten

household budgets.

Canada's retail sales shrank faster than anticipated in

January. The country's central bank has forecast that consumer

spending will drop and GDP will be hit as Canadian businesses

and consumers deal with a wave of tariffs from the Trump

administration.

This has pushed people to look for lower-priced items,

boosting demand at Loblaw's ( LBLCF ) discount banners which offer

everything from fruits to household items.

The Canadian supermarket chain also enjoyed strong demand

for cosmetics and saw growth in pharmacy sales due to an

extended cold and flu season, which helped offset an exit from

certain low-margin electronic products.

Same-store sales at the company's food retail segment rose

2.2% in the first quarter, while comparable sales at its drug

retail unit increased 3.8%.

Loblaw ( LBLCF ) still continues to see tight spending on

discretionary items such as home appliances and furniture, which

analysts have said would take long to recover.

The company's revenue rose 4.1% to C$14.14 billion ($10.22

billion) in the first quarter, compared with the average analyst

estimate of C$14.07 billion, according to data compiled by LSEG.

On an adjusted basis, Loblaw ( LBLCF ) earned C$1.88 per share,

topping expectations of C$1.87.

The company reaffirmed its annual adjusted net earnings per

share forecast of high single-digit percentage growth.

($1 = 1.3829 Canadian dollars)