A lower income tax bill and a drop in financial costs have helped profits at Loblaw but the Canadian retailer today (21 July) reported a fall in half-year sales.
Loblaw posted a 14.7% increase in net earnings to C$359m (US$380.9m) for the 24 weeks to 18 June. Second-quarter earnings climbed 8.8% to C$197m.
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The company’s operating income rose 2.2% to C$648m during the first half of the year. In the second quarter, Loblaw’s operating income was flat at C$345m.
The retailer reported a 0.2% fall in revenue to C$14.15bn, with its retail sales also down 0.2% to C$13.91bn.
Loblaw did see its top line improve in the second quarter, with revenue inching up 0.1% to C$7.28bn on the back of a 0.2% increase in retail sales, which reached C$7.16bn.
However, Loblaw’s food sales were flat during the second quarter. Its overall same-store sales fell 0.4%.
Executive chairman Galen Weston said “unpredictable and competitively intense market conditions continue to put retail sales at risk”.
Weston also said that Loblaw’s investment in IT and its supply chain would “continue to negatively impact our operating income for the remainder of 2011”.
Click here for the full statement from Loblaw.
