Shares in Metro Inc rose today (16 April) after the Canadian retailer reported improved quarterly sales.
Metro reported a 1% rise in same-store sales fall the three months to 15 March. In the first quarter of Metro’s financial year, its same-store sales fell 0.5% year-on-year. Total sales climbed 1.7% in the second quarter to C$2.51bn, compared to a flat result in the first quarter.
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“Our aggregate food basket experienced slight inflation,” Metro said. “Our merchandising strategies and investments, as well as our reorganisation of our Ontario store network enabled us to increase sales in a market that remains intensely competitive.”
The investment in merchandising weighed on gross margins, which fell to 19.1% from 19.5% a year earlier.
Metro booked a fall in reported second-quarter profits as it lapped a period last year when it benefited from the proceeds of the sale of its stake in Canadian c-store group Couche-Tard. Net earnings for the second quarter of 2014 were C$96.9 million, down 76.3% on last year.
However, excluding that one-off gain, as well as the loss from the disposal of foodservice unit Distagro, adjusted net earnings from continuing operations were up 0.5% in the three months to 15 March.
Shares in Metro were up 2.1% at C$65.63 at 11:43 ET.
