Loblaw (TSX: L) 4Q18 Results: Revenues Miss Expectations as Food Demand Proves “Moderate” and Pharmacy Sales Remain Soft

Executive Summary

• Loblaw reported food retail same-store sales growth of 0.8% in 4Q18, versus 0.9% growth in the prior quarter. It reported drug retail same-store sales growth of 1.9% versus 2.5% growth the prior quarter.
• Total revenues of C$11.2 billion came in below the consensus estimate of C$11.27 billion recorded by StreetAccount.
• In FY19, the company expects to report positive same-store sales and a stable gross margin in its retail segment.