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Earnings

Empire Reports Fiscal 2026 Second Quarter Results

By The Northwire Desk — AI Analysis Dec 11, 2025 · 06:30 EMP · 51.23 None
EMP · Price

Executive Summary

  • Empire Company reported net earnings of $159 M ($0.69 EPS) for the quarter ended Nov 1, 2025, down from $173 M ($0.73 EPS) a year earlier.
  • Sales increased 2.8% to $7.995 B; same‑store food sales grew 2.5%, while fuel sales fell 6.0% due to lower fuel prices.
  • The Board declared a quarterly dividend of $0.22 per share payable Jan 30, 2026 and announced continuation of its Normal Course Issuer Bid (NCIB) program.

Key Details

  • Financial Highlights (13‑week quarter)
  • Sales: $7,995 M (+2.8% YoY)
  • Gross profit: $2,147 M (+4.0%) → Gross margin 26.9% (up 14 bps vs. prior year)
  • Operating income: $295 M (‑$24 M YoY)
  • Adjusted operating income: $295 M (‑$24 M YoY)
  • EBITDA: $583 M (‑$18 M YoY); Adjusted EBITDA: $583 M (‑$18 M YoY)
  • Net earnings: $159 M (‑$14 M YoY) → EPS $0.69 (‑$0.04 YoY)

  • Adjusted net earnings: $159 M (‑$14 M YoY) → Adjusted EPS $0.69 (‑$0.04 YoY)

  • Segment Performance – Food Retailing (Sobeys)

  • Sales: $7,995 M (+2.8%) with food sales $7,540 M (+3.4%).
  • Fuel sales: $455 M (‑6.0% YoY).

  • Operating income: $278 M (‑$13 M YoY).

  • Investments & Other Operations – Crombie REIT contribution fell to $13 M from $31 M YoY.

  • Capital Expenditures: $205 M for the quarter (vs. $149 M prior year), primarily store renovations, new‑store construction and technology upgrades.

  • Free Cash Flow: $5 M (down $71 M YoY) driven by higher capex and lower asset disposal proceeds.

  • Balance Sheet Highlights

  • Shareholders’ equity: $5,497 M (up from $5,404 M).
  • Long‑term debt: $1,269 M (up from $1,204 M).

  • Lease liabilities: $6,341 M.

  • Dividend Declaration – Board declared a cash dividend of $0.22 per share payable Jan 30, 2026 to shareholders of record Jan 15, 2026.

  • Financing Activity – Sobeys issued $300 M senior unsecured notes (3.10% interest, due 2028) on Oct 30 2025; proceeds used to repay revolving credit facility and general corporate purposes.

  • NCIB Update – Renewed NCIB authorizes purchase of up to 11.5 M Class A shares (≈9.6% float). As of Nov 1 2025, 1.80 M shares repurchased at $53.21 average price ($96 M total).

  • Operational Updates

  • E‑commerce platform Voilà operating three CFCs; fourth CFC construction paused.
  • New partnerships with Instacart and Uber Eats expanded nationwide.
  • SAP S/4HANA ERP migration underway, slated for phased rollout over next two fiscal years.
  • Scene+ loyalty program now >15 M members.

  • FreshCo added two new stores in Western Canada; total 51 stores, with three more planned in FY2026.

  • Outlook – Capital spend forecast ~ $850 M for FY2026 (≈50% store renovations/new‑store expansion). Expected adjusted EPS growth driven by earnings and share repurchases.

Notable Quotes

“Our core business is performing well, with 2.5% same‑store sales growth,” said Pierre St‑Laurent, President & CEO.

Read the original news release →

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