(Reuters) -Canadian retailer Loblaw on Wednesday beat Wall Street expectations for second-quarter revenue and profit, helped by sustained demand for groceries and drugs and higher prices.
Retailers in Canada have banked on robust demand for essentials such as groceries despite stubbornly high pricing, after inflation pushed consumers to curb spending on non-essential goods.
Loblaw has also benefited from steady drug retail sales as customers prioritizing health and wellness boosted demand for cold and cough medicines as well as beauty products.
The retailer maintained its annual profit forecast growth in the low double digits.
The company’s revenue rose 6.9% to C$13.74 billion ($10.40 billion) in the quarter ended June 17, compared with analysts’ average estimate of C$13.63 billion, according to Refinitiv data.
Net income attributable to the company rose by 31.3% to $508 million. On an adjusted basis, Loblaw’s earnings per share was C$1.94, compared with analysts’ average estimate of C$1.91.
($1 = 1.3208 Canadian dollars)
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta)
