Q3 2025 Empire Company Ltd Earnings Call Transcript
Key Points
- Empire Co Ltd (EMLAF) reported a 3.1% growth in food sales for Q3, with same-store sales increasing by 2.6%, indicating strong performance in both full-service and discount banners.
- The company achieved a 72% growth in e-commerce sales, driven by strong double-digit growth in Voilà and successful partnerships with Instacart and Uber Eats.
- Gross margin improved by 43 basis points, attributed to operational efficiencies and disciplined execution in stores.
- Empire Co Ltd (EMLAF) is experiencing positive same-store sales across all regions and business units, with a notable increase in the Fresh department.
- The company is effectively managing its exposure to US tariffs by reducing reliance on US products and promoting Canadian alternatives, aligning with customer preferences for local products.
- SG&A expenses increased by 4.2% year over year, primarily due to accounting for share-based long-term incentive programs.
- The company faces challenges from retaliatory tariffs, which could impact costs and the Canadian economy, despite having a plan to mitigate direct impacts.
- Empire Co Ltd (EMLAF) is navigating a volatile environment with political shifts and tariffs, creating uncertainty in the operating landscape.
- The company reported flat adjusted EPS of $0.62, with other income and share of earnings from equity investments being $11 million lower than the previous year.
- There is a potential risk of increased costs in the produce category due to retaliatory tariffs and a weaker Canadian dollar, which could affect product assortment and pricing.
Good morning, ladies and gentlemen, and welcome to the Empire third quarter 2025 conference call. (Operator Instructions) This call is being recorded on Thursday, March 13, 2025.
And I would now like to turn the conference over to Katie Brine. Thank you. Please go ahead.
Thank you, Ina. Good morning, and thank you all for joining us for our third-quarter conference call. Today, we will provide summary comments on the results and then open the call for questions. This call is being recorded, and the audio recording will be available on the company's website at empireco.ca. There is a short summary document outlining the points of our quarter available on our website.
Joining me on the call this morning are Michael Medline, President and Chief Executive Officer; Matt Reindel, Chief Financial Officer; and Pierre St-Laurent, Chief Operating Officer. Today's discussion includes forward-looking statements. We caution that such statements are based on management's assumptions and beliefs and are
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