Empire Reports Record Q1 Earnings Amid Strong Sales Growth and Cost Efficiency
Empire Company Limited (EMP.A.TO) reported record fiscal first-quarter earnings for 2027, with diluted EPS rising to C$1.04, a 14.3% increase year over year. The company also saw EBITDA grow by 6.1% to C$712 million and an expanded margin of 8.4%. Food sales increased by 1.7%, same-store sales rose 1.2%, and e-commerce sales grew significantly at 11.3%. Cost efficiencies, particularly in SG&A expenses, helped offset rising wages and expansion costs. Empire is accelerating its growth plans for fiscal 2027, now targeting the opening of more than 25 stores compared to a previous forecast of over 20. The company also expects capital spending of approximately C$850 million while maintaining adjusted EPS growth at the high end of its long-term target range (8%–11%). CEO Pierre St-Laurent attributed strong performance to disciplined execution and productivity initiatives, despite challenges such as affordability concerns among consumers and trade-related uncertainties. The company maintained a stable gross margin excluding fuel costs and expects continued expansion in this area. CFO Constantine Pefanis highlighted the strongest EBITDA results since Project Horizon began over 10 years ago.
Topics: capital_spending earnings ebitda sales_growth