Empire Company Reports 1.5% Revenue Rise, 3.2% Earnings Decline Q1

Empire Company Limited reported a solid start to fiscal 2026 with a 1.5% increase in sales to C$8.26 billion and record diluted earnings per share of C$0.91, up from C$0.86 last year, driven by higher food sales and improved gross margins. Net earnings rose modestly to C$212 million, although adjusted net earnings declined slightly due to prior-year restructuring benefits. The company emphasized ongoing investments in store renovations, new store expansions, and enhancements in data and digital capabilities to drive long-term growth and operational efficiency. Fuel sales decreased due to the removal of the Canadian government carbon tax, while food inflation remained below the national consumer price index. Management aims to continue growing adjusted EPS through earnings growth and share repurchases, with a planned capital spend of approximately C$850 million for fiscal 2026, focusing on stores, IT, logistics, and sustainability. Analysts maintain a Hold rating on the stock but note the company’s strategic initiatives and dividend growth provide a positive outlook despite moderate valuation metrics.