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Loblaw's Growth Extends Beyond Groceries

Loblaw Companies (TSX: L) produced 11.9% adjusted earnings-per-share growth in Q2 despite generating only 1.6% same-store growth from its food retail business.

The difference came from several places outside conventional grocery sales. Pharmacy revenue grew faster than food revenue, newly opened stores expanded Loblaw’s selling space, online delivery continued growing at a double-digit rate, and share repurchases reduced the number of shares among which earnings were divided.

The company also received a final-quarter contribution from PC Financial before completing its sale to EQB on July 1.

You can read more on the matter here.

What’s going on?

• Why the US Warned Banks About Possible Yen Intervention (theDeepDive)

• Canadian oil heads to Japan for the first time in over a year as Iran war tightens Middle East supplies (Reuters)

• The India Problem In Jagmeet Singh’s Destination Canada Appointment (theDeepDive)

• Feds approve Crawford Nickel Project in Ontario, promising it'll create 5,000 jobs during build (CBC)

• US State Department Embarrasses Itself With A Mislabeled Africa Map (theDeepDive)

• Canada Economy Tracking 3.4% Growth as Energy Sector Booms (Bloomberg)

• DOJ Turns Over Unredacted Epstein Files For Judge’s Review (theDeepDive)

• China silent on allegations of NATO spying as Beijing extends Canada anti-dumping probe (Globe)

• Spain Deploys Troops To Ceuta After Mass Migrant Crossing Turns Deadly (theDeepDive)

What’s the latest?

• Budget Deficit: Canada posted a $1.4 billion budget deficit in the first two months of fiscal 2026–27 (April–May), an improvement from a $9.9 billion deficit a year earlier. The smaller deficit was driven by 15.5% higher government revenues, while program spending and public debt interest costs rose more modestly by 3.7% and 3.3%, respectively.

• Tech: Apple shares fell nearly 10% after the company forecast weaker-than-expected revenue growth (9–11% vs. ~12% expected) and warned that AI-driven chip and memory shortages are limiting iPhone and Mac production. CEO Tim Cook said supply constraints are "very significant," raising concerns that the AI data center boom is squeezing component availability across the tech industry.

• Politics: Trump said the U.S. has not approved Ukraine's request to produce Patriot missile systems, despite earlier saying it would. He cited security concerns and said talks are ongoing, while Ukraine continues pushing for Patriot co-production with Lockheed Martin.

• Economy: Canada's economy rebounded in Q2, easing recession fears. GDP rose 0.3% in May, and early estimates point to 3.4% annualized growth in Q2, driven by broad-based gains including oil and gas, housing, construction, manufacturing, and finance. Economists say the data supports the Bank of Canada keeping rates unchanged in September, though growth is expected to slow later this year due to tariffs and higher energy prices.

• Markets: U.S. stocks were mixed and volatile as Amazon surged 15% on strong AI-driven cloud results, while Apple fell over 9% after warning that AI-related component shortages would slow growth. Meanwhile, higher oil prices from the Iran conflict pushed Treasury yields to 4.73%, increasing concerns about inflation and raising expectations that the Federal Reserve may need to hike interest rates later this year.

Why Gold Is Refusing to Break

The stock market and stuff

• TELUS Cuts Dividend 55% as Shares Plunge 12% (theDeepDive)

• First Majestic Delivers $194.6 Million in Q2 Free Cash Flow, Lifts Treasury to $1.3 Billion (theDeepDive)

• Exxon and Chevron profits surge on rising oil prices due to Iran war (CNBC)

• BP Moves To Sell North Sea Business After 60 Years (theDeepDive)

In the juniors

• Canada Nickel’s Crawford Federal Approval Shifts the Risk to Financing (theDeepDive)

• Metalsource Mining Extends Strike Length of Mineralization at Silver Hill with 65m South Step Out from SH26-19 (JMN)

• Algoma Posts Record Plate Sales While Its Submarine Deal Collapses (theDeepDive)

FULL DISCLOSURE: Power Metallic is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Metallic. The author has been compensated to cover Power Metallic on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.