Q1 2027 EMPIRE COMPANY LIMITED Earnings Call Transcript
Key Points
- Record high first quarter EPS of CAD1.04, up 14.3% year over year, driven by disciplined execution and cost efficiency initiatives.
- Food sales grew 1.7% with same-store sales up 1.2%, reflecting positive growth in both full-service and discount businesses.
- E-commerce sales increased 11.3% year over year across platforms and third-party partnerships, with plans to accelerate growth.
- SG&A rate improved by 80 basis points excluding depreciation and amortization, marking the third consecutive quarter of operating leverage.
- EBITDA margin expanded 28 basis points to 8.4%, the strongest performance since Project Horizon began, and adjusted EPS growth is expected at the high end of the 8-11% framework for fiscal 2027.
- Gross margin excluding fuel was essentially flat year-over-year, impacted by strong prior year comparison, higher supply chain costs, and elevated fuel-related expenses.
- Same-store sales growth of 1.2% was softer than some analysts expected, despite industry square footage growth and a competitor's strike.
- The market environment remains challenging with consumers highly focused on value and affordability amid fuel price volatility and trade-related uncertainty.
- Internal inflation remained below StatCan food CPI, indicating limited pricing power and potential margin pressure.
- SG&A performance may not progress in a straight line each quarter, and the company faces continued investment needs and higher retail salaries.
Good morning, ladies and gentlemen, and welcome to the Empire Company first quarter F27 conference call. (Operator Instructions) This call is being recorded on Thursday, September 10, 2026.
I would now like to turn the conference over to Katie Brine. Please go ahead.
Thank you, Julie. Good morning, and thank you for joining us today for Empire's first quarter fiscal 2027 conference call.
Today, we will provide summary comments on our 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 as well. Joining me on the call this morning are Pierre St-Laurent, President and Chief Executive Officer; Constantine Pefanis, Chief Financial Officer; and Luc L'Archevêque, Chief Customer Officer.
Before we begin, I would remind you that today's discussion includes forward-looking statements. We caution that these statements are based on
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
