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Empire Company (TSXV:EP), the parent organization of Sobeys, posted quarterly results that significantly outperformed expectations, causing its shares to rise by more than 4% on Thursday. Headquartered in Nova Scotia, the company owns various well-known grocery brands, including Safeway, IGA, Foodland, Farm Boy, FreshCo, Thrifty Foods, and Lawtons Drug. These brands help position Empire as a key player in the Canadian grocery and retail sector. For the fiscal first quarter of 2025, Empire reported sales of $8.14 billion, an increase from the $8.08 billion recorded in the same quarter a year earlier. This performance also surpassed earlier projections, which were set at $8.05 billion.
Same-store sales, a critical metric for gauging the health of existing operations, rose by 0.5%. When excluding fuel sales, this increase climbed to 1%, signaling that the company’s core grocery business remains robust. Empire's ability to navigate through market challenges, including inflationary pressures and fluctuating consumer demand, speaks to its operational efficiency and strategic focus on cost management.
In terms of earnings, the company posted adjusted earnings per share (EPS) of $0.90, a marked improvement over the $0.78 EPS achieved during the same period last year. This result also exceeded market expectations, which had predicted $0.87 per share. The company’s strong control over its margins and costs played a significant role in delivering these strong earnings figures, highlighting the effectiveness of its management strategies.
Empire’s CEO, Michael Medline, expressed optimism for the rest of the fiscal year, pointing to strengthening same-store sales growth and continued margin control. He noted that gradually improving market conditions are providing a more stable and predictable environment in which the company can operate. This outlook is likely reflected in the company’s share performance, as Empire's stock rose by 4.4% to US$29.70 by late morning on Thursday.
Empire’s continued focus on operational excellence, cost management, and consistent sales growth has allowed it to outperform in a competitive retail environment. With its diverse portfolio of grocery brands and strong financial performance, the company is well-positioned for future growth and stability within the consumer retail space.
