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

Empire (TSE:EMP.A) issued its quarterly earnings data on Thursday. The company reported C$0.72 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of C$7.89 billion for 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:

• Empire reported adjusted Q3 EPS of CAD 0.72 (up 16.1% YoY) with food sales +3% and food same‑store sales +2%, driven by strong full‑service and discount performance and improved cost discipline.
• The company recorded a CAD 746 million impairment tied to its e‑commerce update (Calgary CFC closure) but expects the restructuring plus a national DoorDash partnership to produce ~CAD 95 million of annualized operating income (about two‑thirds to the bottom line) beginning in Q4.
• Loyalty was bolstered by adding Shell Canada fuel to Scene+ (Alberta rollout began; national rollout May 26), which management says will drive member growth and higher share‑of‑wallet.
• Retail media (Empire Media+) is gaining traction since its Nov 2024 launch, with revenues up ~50% and increasing supplier commitments—management positions it as a meaningful growth engine.
• A refreshed executive structure aligns leadership around four “obsessions” (customers, stores, growth, cost), elevates pharmacy to the executive team, and is intended to clarify accountability and accelerate execution.

Empire Stock Up 3.9%

Shares of TSE:EMP.A opened at C$49.19 on Friday. The firm has a market capitalization of C$11.32 billion, a PE ratio of 16.67, a price-to-earnings-growth ratio of 16.20 and a beta of 0.01. The company has a debt-to-equity ratio of 135.51, a quick ratio of 0.29 and a current ratio of 0.79. Empire has a 52-week low of C$43.02 and a 52-week high of C$58.32. The firm has a fifty day moving average of C$47.51 and a 200 day moving average of C$48.93.

Analysts Set New Price Targets

EMP.A has been the topic of a number of research analyst reports. Canadian Imperial Bank of Commerce decreased their target price on Empire from C$59.00 to C$53.00 and set an “outperform” rating on the stock in a research note on Friday, December 12th. TD Securities dropped their price target on Empire from C$58.00 to C$50.00 and set a “hold” rating for the company in a research report on Friday, December 12th. National Bank Financial cut their price objective on Empire from C$58.00 to C$54.00 and set a “sector perform” rating for the company in a report on Friday, December 12th. Royal Bank Of Canada decreased their price objective on shares of Empire from C$61.00 to C$55.00 and set a “sector perform” rating on the stock in a research report on Friday, January 23rd. Finally, Desjardins lowered their target price on shares of Empire from C$60.00 to C$53.00 and set a “buy” rating on the stock in a research note on Friday, December 12th. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of C$52.83.

About Empire

Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire’s subsidiary Sobeys and represents nearly all of the company’s income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton’s Drug Stores, and multiple retail fuel locations. The company’s investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.