Canadian retailer Loblaw Cos Ltd beat analysts' estimates for quarterly revenue and profit, boosted by online sales as stuck-at home consumers spend more on groceries during the COVID-19 pandemic.
Loblaw, which sells everything from beauty products to mobile connections, said it would invest more to expand the pick-up and delivery operation while aiming to reduce costs amid the coronavirus crisis.
The company's online sales more than doubled in the third quarter.
Net earnings attributable to its shareholders rose to C$345 million (€222.14 million), or 96 Canadian cents per share, in the quarter ended Oct. 3, from C$334 million (€215 million), or 90 Canadian cents per share, a year earlier.
Excluding one-time items, Loblaw earned C$1.30 per share, beating the average analyst estimate of C$1.26 per share, according to IBES data from Refinitiv.
Loblaw, a subsidiary of the biggest Canadian retail group George Weston, posted revenue of C$15.67 billion (€10.09 billion), a 6.9% rise from a year earlier and above analysts' estimate of C$15.61 billion.
“Loblaw delivered strong operating performance in the quarter, while investing in providing exceptional value, safety and convenience,” commented Galen Weston, executive chairman, Loblaw Companies Limited. “We continued to build for the future, expanding our digital network and leveraging our PC Optimum loyalty program to create even more value for Canadian families.”
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