Loblaw Companies Limited reported adjusted diluted earnings per share growth of 10.9% in the fourth quarter of fiscal 2025 on a 12-week comparable basis, as revenue, traffic and e-commerce sales increased across its Canadian food and drug retail network.

For the quarter ended January 3, 2026, retail revenue reached $16.38 billion, while adjusted diluted EPS was $0.67.

On a comparable 12-week basis:

  • Revenue increased 3.5%

  • Adjusted diluted EPS increased 10.9%

  • Food same-store sales rose 1.5%

  • Drug same-store sales rose 3.9%

  • E-commerce sales increased 19.6%

The company noted that comparisons reflect a 13-week Q4 2025 period versus a 12-week Q4 2024 period, with comparable metrics presented on a 12-week basis.

Retail operating income increased 43.0% to $1.13 billion.

Adjusted EBITDA rose 11.3% to $1.78 billion.

Net earnings available to common shareholders were $656 million, up 42.0%.

Retail gross profit margin was 30.8%, down 10 basis points. On a 12-week comparable basis, gross margin improved 10 basis points to 31.0%.

Selling, general and administrative expenses were 20.0% of sales, down 10 basis points. On a comparable basis, SG&A remained flat at 20.1%.

Full-Year Fiscal 2025 Performance

For the 53-week fiscal year ended January 3, 2026:

  • Retail revenue: $63.9 billion, up 6.3%

  • Comparable revenue growth (52-week basis): 4.4%

  • Food same-store sales: +2.3%

  • Drug same-store sales: +3.9%

  • E-commerce sales: ~$4.6 billion, up 18.1%

  • Adjusted diluted EPS: $2.43, up 13.6%

  • Comparable adjusted diluted EPS growth: 10.7%

Net earnings available to common shareholders reached $2.67 billion, up 23.8%.

Store Expansion, Automation and Capital Deployment

During 2025, Loblaw opened 77 new stores across its banners.

In the fourth quarter alone, the company opened 15 No Frills® and Maxi® hard discount locations, expanding its value-focused network.

The company also ramped up the first of two automated distribution centres, each approximately one million square feet.

Fourth-quarter net capital investment totalled $677 million.
Full-year capital investment reached $1.79 billion.

Free cash flow from continuing retail operations was $1.24 billion in Q4 and $1.91 billion for the year.

Loblaw repurchased 9.8 million shares in the quarter at a cost of $592 million. Full-year buybacks totalled 34.8 million shares at $1.88 billion.

Strategic Developments

The company confirmed the previously announced agreement for EQB Inc. to acquire President’s Choice Bank and affiliated entities. The transaction is expected to close in calendar 2026, subject to regulatory approvals.

PC Financial results are presented as discontinued operations.

Loblaw also completed a four-for-one stock split in August 2025, implemented through a stock dividend.

Why It Matters

The Loblaw Q4 2025 Results show continued resilience in Canada’s grocery and pharmacy sectors, with steady same-store growth, accelerating e-commerce and disciplined margin management.

Hard discount expansion signals ongoing focus on price positioning, while automation investment indicates long-term supply chain efficiency strategy.

Comparable EPS growth above 10% for both the quarter and full year reflects operating leverage and capital discipline in a competitive retail environment.

With store network expansion, logistics automation and pharmacy growth contributing to results, Loblaw exits fiscal 2025 with strengthened profitability and continued infrastructure investment.