EPS of 69c beat estimates of 68c; revenue of $19.39B matched estimates. EBITDA of $2.21B beat estimates by 1.3%. Loblaw's strong year-to-date performance and an extra week in 4Q will likely support sales growth of 6.5-7% for the year. Value-seeking behavior remains, with continued higher tonnage, gains in basket and item count, as well as hard-discount formats outgrowing conventional -- a trend that may extend in the coming months. Inflation for Loblaw has trailed CPI, though potential tariffs and brands passing along higher-than-normal price hikes could pose additional headwinds. A more favorable sales mix and improved shrink helped gross margin expand 30 bps, with the metric likely to remain stable in 4Q. Management updated its outlook for adjusted EPS to grow in the low-double digits (likely in the 13% range) from high-single-digit gains previously. Things look solid at Loblaw.
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