Empire (TSE:EMP.A) Issues Quarterly Earnings Results

Empire (TSE:EMP.A) released its quarterly earnings results on Thursday. The company reported C$1.04 earnings per share for the quarter, FiscalAI reports. The business had revenue of C$8.47 billion during the quarter. Empire had a return on equity of 12.94% and a net margin of 2.18%.

Here are the key takeaways from Empire’s conference call:

• Q1 EPS rose 14.3% year over year to CAD 1.04, supported by sales growth, cost efficiencies, e-commerce improvements, share repurchases, and a pension settlement gain. EBITDA increased 6.1% to CAD 712 million, while the EBITDA margin expanded 28 basis points to 8.4%.
• Management raised its store-opening expectation to more than 25 locations in fiscal 2027, including four Mayrand stores, representing approximately 2% square-footage growth. Capital expenditures remain planned at roughly CAD 850 million, with about half directed to renovations and new-store expansion.
• E-commerce sales grew 11.3% year over year, with growth in both Voilà and third-party partnerships. Management expects faster future e-commerce growth through its “e-commerce 2.0” strategy and technology investments.
• Food sales increased 1.7%, with same-store sales up 1.2%, while gross margin excluding fuel was essentially flat amid higher supply-chain costs and fuel-related expenses. Consumers remain highly focused on value and affordability, although Empire said it is gaining share in full-service and maintaining its discount position.
• Empire maintained its expectation for adjusted EPS growth at the high end of its 8%–11% long-term framework for fiscal 2027, supported by gross-margin expansion and annual operating leverage. The company also repurchased approximately 2 million shares for CAD 95 million and expects CAD 90 million–CAD 110 million of fiscal 2027 income from equity investments and other income.

Empire Price Performance

Shares of TSE EMP.A opened at C$45.61 on Friday. The business has a fifty day moving average price of C$49.03 and a two-hundred day moving average price of C$48.77. The stock has a market capitalization of C$10.20 billion, a PE ratio of 53.03, a P/E/G ratio of 16.20 and a beta of -0.29. The company has a debt-to-equity ratio of 135.51, a current ratio of 0.79 and a quick ratio of 0.29. Empire has a fifty-two week low of C$43.81 and a fifty-two week high of C$52.64.

Empire Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Friday, July 31st were issued a $0.2425 dividend. The ex-dividend date of this dividend was Wednesday, July 15th. This represents a $0.97 annualized dividend and a yield of 2.1%. This is a boost from Empire’s previous quarterly dividend of $0.22. Empire’s payout ratio is presently 102.33%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on EMP.A shares. TD lowered their price objective on Empire from C$53.00 to C$52.00 and set a “hold” rating on the stock in a research report on Friday. Canadian Imperial Bank of Commerce boosted their target price on shares of Empire from C$54.00 to C$58.00 and gave the company an “outperformer” rating in a research report on Friday, June 19th. National Bank Financial decreased their price target on shares of Empire from C$56.00 to C$54.00 and set a “sector perform” rating on the stock in a research note on Friday. BMO Capital Markets raised shares of Empire from a “market perform” rating to an “outperform” rating and set a C$58.00 price target on the stock in a research report on Monday, July 20th. Finally, Scotia dropped their price objective on shares of Empire from C$50.00 to C$48.00 and set a “sector perform” rating for the company in a research note on Friday. Three analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of C$53.67.

Empire News Roundup

Here are the key news stories impacting Empire this week:

• Positive Sentiment: Empire reported first-quarter earnings of C$1.04 per share and revenue of approximately C$8.47 billion. Sales and profit increased as the company added locations and emphasized discount-focused offerings, supporting the stock’s long-term growth case. Empire reports higher sales and profit as it adds locations, focuses on discount
• Positive Sentiment: Desjardins maintained a “buy” rating, although it reduced its price target from C$57 to C$53. National Bank Financial’s revised C$54 target and TD’s C$52 target also remain above the current share price, indicating analysts continue to see potential appreciation.
• Neutral Sentiment: Empire’s quarterly revenue was below the FactSet consensus of C$8.54 billion, coming in at C$8.47 billion. The modest miss may limit the positive impact of the earnings beat and stronger sales narrative. Empire first-quarter revenue report
• Negative Sentiment: TD cut its target to C$52 from C$53 and downgraded its stance to “hold.” National Bank Financial lowered its target to C$54 from C$56 and assigned a “sector perform” rating, while Scotia reduced its target to C$48 from C$50.
• Negative Sentiment: The broad target-price reductions—particularly Scotia’s limited implied upside—signal that analysts see fewer near-term catalysts following the results. This cautious reassessment is likely the main reason EMP.A has decreased despite reporting higher quarterly earnings and sales.

Empire Company Profile

Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc, and related real estate. With approximately $32 billion in annual sales and $17 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 130,000 people. Additional financial information relating to Empire, including the Company’s Annual Information Form, can be found on the Company’s website at www.empireco.ca or on SEDAR+ at www.sedarplus.ca.