Empire Company profit down, sales up in Q2

Empire Company Limited reported a profit of $181.1 million in its second quarter, fiscal 2024, down from $189.9 million in the same quarter last year. Sales increased in the quarter to $7.75 billion, up from $7.64 billion in last year’s second quarter.

“While higher interest rates and overall economic uncertainty are impacting customer purchasing behaviours, the fundamentals of our business remain strong” said Michael Medline, President & CEO, Empire. “We continue to attract more customers in our stores, our promotions are constantly improving, and we continue to protect our margins. We have a clear strategy to deliver against and our team is executing with focus and precision.”

Empire says discount drove sales for the quarter, which ended November 4, 2023, increased by 1.4 per cent, although the company noted it experienced “positive growth across the business.”

Store network expansion with a focus on discount

Empire says it plans to continue expanding its store network through investments in renovations, conversions and new stores and will focus on expanding its discount channel and its private label brand. It plans to invest capital in its store network and plans to renovate approximately 20 to 25 per cent of its network over the next three years. Capital investment include sustainability initiatives such as refrigeration system upgrades, heating, ventilation and air conditioning system upgrades and other energy efficiency initiatives.