Quarterly earnings per share ("EPS") and adjusted EPS(1)(2) of $0.94, an increase of 27.0%
Sales of $7,807 million, an increase of 2.2%
Same-store sales(1) growth - food increased by 1.5%
Operating income increase of 10.9%
Adjusted EBITDA(1)(2) margin of 8.2%, an increase of 40 basis points
STELLARTON, NS, June 18, 2026 /CNW/ - Empire Company Limited ("Empire" or the "Company") (TSX:EMP) today announced its financial results for the fourth quarter and full year ended May 2, 2026. For the quarter, the Company recorded net earnings and adjusted net earnings of $212 million ($0.94 per share) compared to $173 million ($0.74 per share) last year, an increase of 22.5% (or 27.0% on a per share basis).
"We delivered a solid finish to fiscal 2026, with adjusted EPS growth of 27 per cent, reflecting disciplined execution and continued progress against our strategic priorities," said Pierre St-Laurent, President & CEO, Empire. "As we enter fiscal 2027, our focus remains on driving growth within our existing network, advancing key growth engines, and continuing to elevate our value proposition for customers in what remains a challenging economic environment."
(1)
See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A.
(2)
Adjusted Metrics include adjusted operating income, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted net earnings, and adjusted EPS. During the fourth quarters of fiscal 2026 and fiscal 2025, there were no adjusting items.
Strategic Focus
The Company's ambition is to be the best retailer in Canada, providing quality and value with differentiated offerings and seamless experiences, with a strong focus on serving local cultures in every community. Empire recently launched its new three-year corporate strategy which is anchored to four core priority focus areas: Customers, Stores, Growth, and Cost Efficiency. Empire's belief is that long-term success is driven not solely by scale or market presence, but by the quality of the relationships the teammates in stores build with customers and the experiences they consistently deliver.
The Company prides itself on being a family nurturing families and its purpose is to serve the grocery shopping needs of millions of Canadians across the country.
Technology is a critical enabler of Empire's strategy. Advanced analytics, artificial intelligence, and modern digital platforms are being applied thoughtfully across the business to enhance the customer experience, support better decision making and improve how Empire's teams work every day.
Through these four core priority focus areas, which will be enabled by Empire's people, data and technology, the Company aims to grow total adjusted EPS over the long-term through sustained net earnings growth and share repurchases. Specifically, the Company intends to continue growing sales, expanding gross margin (excluding fuel), and generating operating leverage.
Customers: Strengthening the Value Proposition:
Empire's primary focus is to serve its customers by delivering greater value across all formats and channels. The Company is enhancing its customer value proposition through optimized assortments, differentiated and localized offerings, expanded fresh and prepared foods supported by central kitchen investments, and deeper customer engagement through Scene+. Empire continues to leverage the unique strengths of each banner particularly in local and multicultural offerings to differentiate at scale, supported by advanced analytics, tools, and capabilities.
Stores: Driving Retail Performance:
Empire is focused on improving retail performance by elevating the in-store experience, simplifying operations, and optimizing store economics so that stores can focus on what matters most - serving customers. The Company also prioritizes continuing to invest in the strategic expansion, renovation, and maintenance of its store network.
Growth: Accelerating Profitable Expansion:
With strong foundational capabilities in place, Empire's focus is now on accelerating growth. This includes enhancing performance across its existing platforms (such as Pharmacy, E-commerce, and Retail Media) and pursuing strategic acquisitions and partnerships that complement its core grocery and pharmacy retail operations and support long-term value creation. Driving growth is also a priority within the Company's existing network through the customer experience, offering, and executional standards within the four walls of its stores.
Cost Efficiency: Strengthening Operating Discipline:
As Empire realizes the full cost savings benefits from investments and initiatives that have been implemented over recent years, the Company will continue to maintain a strong focus on cost discipline to improve bottom-line performance. By simplifying processes, driving efficiencies, and reducing complexity, Empire is well positioned to invest in high-value opportunities that will deliver the greatest impact for customers and shareholders.
SUMMARY RESULTS - FOURTH QUARTER & FISCAL YEAR
Comparative amounts have been rounded to the nearest million to conform with current year presentation.
(in millions of Canadian dollars, except per share amounts)
May 2, 2026
May 3, 2025
May 2, 2026
May 3, 2025
13 Weeks
13 Weeks
$ Change
52 Weeks
52 Weeks
$ Change
Sales
$ 7,807
$ 7,637
$ 170
$ 31,950
$ 31,277
$ 673
Gross profit(1)
2,152
2,109
43
8,664
8,382
282
Operating income
347
313
34
586
1,289
(703)
Adjusted operating income(1)
347
313
34
1,332
1,303
29
EBITDA(2)
644
599
45
1,754
2,409
(655)
Adjusted EBITDA(1)
644
599
45
2,500
2,423
77
Net earnings(3)
212
173
39
198
700
(502)
Adjusted net earnings(1)(2)(3)(4)
212
173
39
747
711
36
Diluted earnings per share
EPS(3)
$ 0.94
$ 0.74
$ 0.20
$ 0.86
$ 2.93
$ (2.07)
Adjusted EPS(1)(2)(3)(4)
$ 0.94
$ 0.74
$ 0.20
$ 3.24
$ 2.98
$ 0.26
Diluted weighted average number of shares outstanding (in millions)
226.5
234.8
(8.3)
230.4
238.6
(8.2)
Dividend per share
$ 0.22
$ 0.20
$ 0.02
$ 0.88
$ 0.80
$ 0.08
May 2, 2026
May 3, 2025
May 2, 2026
May 3, 2025
13 Weeks
13 Weeks
52 Weeks
52 Weeks
Gross margin(1)
27.6 %
27.6 %
27.1 %
26.8 %
EBITDA margin(1)
8.2 %
7.8 %
5.5 %
7.7 %
Adjusted EBITDA margin(2)
8.2 %
7.8 %
7.8 %
7.7 %
Same-store sales(1) growth
1.7 %
3.0 %
1.4 %
1.9 %
Same-store sales(1) growth - food
1.5 %
3.8 %
1.9 %
2.3 %
Same-store sales(1) growth (decline) - fuel
5.0 %
(7.8) %
(6.6) %
(4.2) %
Effective income tax rate
19.3 %
25.2 %
20.1 %
25.0 %
(1)
See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A.
(2)
See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A for a description of the types of costs and recoveries included.
(3)
Attributable to owners of the Company.
(4)
See "Adjusted Impacts on Net Earnings" section of this News Release.
FINANCIAL PERFORMANCE BY SEGMENT
Food Retailing
The following is a review of Empire's Food retailing segment's financial performance, comprising the consolidated results of Sobeys for the quarters and fiscal years ended May 2, 2026 and May 3, 2025.
The following financial information is Sobeys' contribution to Empire as the amounts are net of consolidated adjustments.
May 2, 2026
May 3, 2025
May 2, 2026
May 3, 2025
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
52 Weeks
52 Weeks
$ Change
Sales
$ 7,807
$ 7,637
$ 170
$ 31,950
$ 31,277
$ 673
Gross profit
2,152
2,109
43
8,664
8,382
282
Operating income
322
307
15
508
1,234
(726)
Adjusted operating income(1)
322
307
15
1,254
1,248
6
EBITDA(1)
619
593
26
1,676
2,354
(678)
Adjusted EBITDA(1)
619
593
26
2,422
2,368
54
Net earnings(2)
193
169
24
146
659
(513)
Adjusted net earnings(1)(2)
193
169
24
695
670
25
(1)
See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release for a reconciliation of the adjusted metrics presented in this table.
(2)
Attributable to owners of the Company.
The following table provides a breakdown of the Company's total sales:
May 2,
2026
May 3,2025
May 2,2026
May 3,2025
(in millions of Canadian dollars)
13Weeks
13Weeks
$ Change
%Change
52
Weeks
52 Weeks
$ Change
%Change
Food sales
$ 7,337
$ 7,189
$ 148
2.1 %
$ 30,145
$ 29,338
$ 807
2.8 %
Fuel sales
470
448
22
4.9 %
1,805
1,939
(134)
(6.9) %
Investments and Other Operations
The following table provides a summary of operating income in the Investments and Other Operations segment:
May 2, 2026
May 3, 2025
May 2, 2026
May 3, 2025
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
52 Weeks
52 Weeks
$ Change
Crombie REIT(1)
$ 13
$ 11
$ 2
$ 51
$ 65
$ (14)
Real estate partnerships
15
1
14
37
16
21
Other operations, net of corporate expenses
(3)
(6)
3
(10)
(26)
16
Operating income
$ 25
$ 6
$ 19
$ 78
$ 55
$ 23
(1)
Crombie Real Estate Investment Trust ("Crombie REIT").
Empire Company Limited Operating Results
Sales
Food sales for the quarter ended May 2, 2026 increased by 2.1%, primarily driven by positive growth across the business, particularly in the Full-Service and Discount banners and the Company's national wholesale distribution network.
Fuel sales for the quarter ended May 2, 2026 increased by 4.9%, primarily driven by higher fuel prices.
Food sales for the fiscal year ended May 2, 2026 increased by 2.8% primarily driven by positive growth across the business, particularly in the Full-Service banners, the Company's national wholesale distribution network, and in the Discount banner.
Fuel sales for the fiscal year ended May 2, 2026 decreased by 6.9% driven by lower fuel prices due to the removal of the government carbon tax.
Gross Profit
Gross profit for the quarter ended May 2, 2026 increased by 2.0% primarily driven by higher food sales, strong performance and operational discipline in Full-Service and Discount banners.
Gross margin for the quarter ended May 2, 2026 remained consistent with the prior year at 27.6%. Excluding the mix impact of fuel sales, gross margin for the quarter ended May 2, 2026 increased by 1 basis point.
Gross profit for the fiscal year ended May 2, 2026 increased by 3.4% primarily driven by higher food sales and strong performance and operational discipline in Full-Service and Discount banners.
Gross margin for the fiscal year ended May 2, 2026 increased to 27.1% from 26.8% in the prior year, primarily driven by strong performance in Full-Service and Discount banners as a result of disciplined execution and several targeted efficiencies in our stores, including initiatives aimed at inventory control and reducing shrink, and better promotional mix control and the mix impact of lower fuel sales, partially offset by the mix impact of higher wholesale distribution sales.
Excluding the mix impact of fuel sales, gross margin was 14 basis points higher than in prior year which is consistent with the Company's medium term growth expectations of 10-20 basis points.
Operating Income
May 2, 2026
May 3, 2025
May 2, 2026
May 3, 2025
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
52 Weeks
52 Weeks
$ Change
Food retailing
$ 322
$ 307
$ 15
$ 508
$ 1,234
$ (726)
Investments and other operations:
Crombie REIT
13
11
2
51
65
(14)
Real estate partnerships
15
1
14
37
16
21
Other operations, net of corporate expenses
(3)
(6)
3
(10)
(26)
16
25
6
19
78
55
23
Operating income
$ 347
$ 313
$ 34
$ 586
$ 1,289
$ (703)
Adjustments:
E-commerce Impairment(1)
-
-
-
746
-
746
E-commerce Exclusivity(1)
-
-
-
-
12
(12)
Restructuring(1)
-
-
-
-
2
(2)
-
-
-
746
14
732
Adjusted operating income(2)
$ 347
$ 313
$ 34
$ 1,332
$ 1,303
$ 29
(1)
See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A for a description of the types of costs and recoveries included.
(2)
See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A.
For the quarter ended May 2, 2026, operating income from the Food retailing segment increased mainly due to higher sales and gross profit, partially offset by higher selling and administrative expenses and an increase in depreciation and amortization.
For the fiscal year ended May 2, 2026, operating income from the Food retailing segment decreased mainly due to the E-Commerce Impairment during the third quarter of fiscal 2026, higher selling and administration expenses, an increase in depreciation and amortization in the current year, partially offset by higher sales and gross profit.
For the quarter ended May 2, 2026, operating income from the Investments and other operations segment increased primarily as a result of the realization of foreign exchange on the wind up of real estate partnerships.
For the fiscal year ended May 2, 2026, operating income from the Investments and other operations segment increased primarily as a result of the realization of foreign exchange on real estate partnerships.
EBITDA
May 2, 2026
May 3, 2025
May 2, 2026
May 3, 2025
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
52 Weeks
52 Weeks
$ Change
EBITDA(1)
$ 644
$ 599
$ 45
$ 1,754
$ 2,409
$ (655)
Adjustments:
E-commerce Impairment(2)
-
-
-
746
-
746
E-commerce Exclusivity(2)
-
-
-
-
12
(12)
Restructuring(2)
-
-
-
-
2
(2)
-
-
-
746
14
732
Adjusted EBITDA(1)(2)
$ 644
$ 599
$ 45
$ 2,500
$ 2,423
$ 77
(1)
See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A.
(2)
See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A for a description of the types of costs and recoveries included.
For the quarter ended May 2, 2026, EBITDA increased to $644 million from $599 million in the prior year mainly as a result of higher sales and gross profit, partially offset by higher selling and administrative expenses. Selling and administrative expenses increased mainly due to ...
