Loews Corporation

Loblaw said full-year revenue was $61 billion and adjusted earnings were more than $2.6 billion. In Q4, consolidated revenue was $14.9 billion, up 2.9%, adjusted EBITDA increased 4% to $1.7 billion, and adjusted diluted EPS rose 10% to $2.20. On a GAAP basis, net earnings fell 14.6% because of a $129 million non-cash charge tied to revaluing the PC Optimum liability. Total retail gross margin was 30.9%, down 20 basis points, and retail free cash flow was $828 million in the quarter and $1.5 billion for the full year. For 2025, the company expects roughly 80 new stores, about $2.2 billion in capex, $1.9 billion net of property-disposal proceeds, around a 2% EPS benefit from the 53rd week, and high-single-digit EPS growth excluding that week.

The CEO framed 2024 as a year of stronger customer traction, saying Loblaw delivered its best full-year food market share gain in more than a decade and ended the year with momentum across food, discount, pharmacy, and digital. He emphasized that customer affordability remains stressed, so the company is leaning harder into value, discount formats, private label, and Canadian-sourcing tools like 'Swap and Save' and 'Swap and Shop Canadian.' His tone was upbeat and confident, especially on the long-term benefits of new stores, smaller formats, and pharmacy/clinic expansion.

The CFO highlighted broad operational consistency, pointing to $61 billion of full-year revenue, more than $2.6 billion of adjusted earnings, and Q4 adjusted EPS of $2.20, up 10%. He said Q4 gross margin of 30.9% was down 20 bps mainly because of mix, the Canada Post strike, and the Thanksgiving timing shift, partially offset by shrink improvement; SG&A improved by 20 bps on operating leverage and lapping prior-year labor costs. On capital allocation, he noted $1.8 billion of share repurchases in 2024, a 13.9% dividend increase, $1.5 billion of full-year retail free cash flow, and a plan to keep returning most free cash flow to shareholders while funding $2.2 billion of capex in 2025.

Analysts focused on the drivers of momentum, new-store economics, tariff exposure, inflation, and whether store expansion would pressure returns. Management said the 2025 plan already incorporates the drag from new stores and the new frozen DC, and stressed that they are not lowering ROIC hurdles. On tariffs, they said less than 10% of COGS is sourced from the US, with the biggest risk in produce, and that control brands and supplier substitution can mitigate part of the exposure. They also reiterated that consumer demand is shifting toward discount and Canadian products, citing strong early use of the Canadian-product digital feature.