Loblaw's second quarter profit down after agreeing to settle price-fixing lawsuit
Grocery and drugstore retailer Loblaw Cos. Ltd. reported its second-quarter profit decreased compared with a year ago.
The parent company of Loblaws and Shoppers Drug Mart says it earned a profit available to common shareholders of $457 million or $1.48 per diluted share for the quarter ended June 15.
The result was down from $508 million or $1.58 per diluted share in the same quarter last year, which Loblaw attributed primarily to charges related to the settlement of class action lawsuits. On Thursday (July 25), the grocer announced it and parent company George Weston Ltd. have agreed to pay $500-million to settle a class-action lawsuit regarding their involvement in an alleged bread price-fixing scheme.
READ: Boycott had little impact on sales in Q2, Loblaw execs say
Revenue for the quarter totalled $13.95 billion, up from $13.74 billion a year earlier.
Food retail same-stores sales rose by 0.2%, while drug retail same-store sales increased by 1.5%, with front store same-store sales down 2.4% and pharmacy and health-care services same-store sales up 5.4%.
On an adjusted basis, Loblaw says it earned $2.15 per diluted share in its latest quarter, up from an adjusted profit of $1.94 per diluted share a year earlier.
