Q2 2025 Empire Co Ltd Earnings Call
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Have during this call you need assistance. Thank you Joanna. Good afternoon and we are all for joining us for the quarter in Colorado. Today we will provide a summer comments on our and then open the
Calling recorded and the audio recording will be available on the company's website. Thank you.
Good afternoon and thank you all of our quarter today. We will provide a summary comments on joining me on the call. This afternoon, calling recorded and the audio recording background.
And parking.
Management system include them forward.
We called out.
A management assumption.
Good afternoon, everyone.
Continues to be an improving consumer.
Environment.
We sell momentum and green.
Economy. And
And our business. Thanks, Katie, and everyone else to gradually turning.
and we,
Improvements. Which were hard to execute short costs.
We?
To both the rising.
Interest rates and the price of gradually.
Also working.
For success to our cost. Once the economy started to receive
We representing.
The full service while also working on an initiative.
and now, inflation moderated and
To the beginning, I come to life.
Positive.
Trends over the lives.
and,
work on our major in and
we've been able to get
to life in our resolve, we're pleased with the progression of
We highlighted in Q words gradually.
Sales.
Present food in place.
Early.
In the cloud by 70.
The quarter continued.
To both our full service and place on the channel.
And their respective marketing to more.
For the portal for.
We can call 575.
Same closing.
Both are full service.
Within the respectfully.
Afternoon.
And discount.
To highlight and deliver value.
We present.
for our kind of call service for
significant number of large for the last few years.
Across all of.
Indications.
We have launched.
Them.
Multicultural, because
and smaller to be early indication.
Customers return to office.
Purchasing value. If you customer number is growing in our store, margin and continue,
Average 4 to 5.
Focus on stores, so purchasing mortal patient. Time for Strat margin of
Basis, point many production, behaviors a few initiatives that continued Broad.
Focus on stores shrink margin improvement in our 40 life.
Driven by women.
Which are Fallen.
Is important.
And delivered.
and with within our cars live stream, there are 2
Special with a higher degree.
Of.
Advanced quartering a human and a delivery schedule strengthening.
To reduce costs and mileage. We're executing with
in areas such as outbound getting better.
Strengthening.
For the carriers.
Delivery restores and Ontario. We have
Be.
an expansion across are not only
An expectation.
This quarter compared to 69 and this is the lowest rate of growth of 1 is fundamental to involve the last year team.
Which is starting to.
Suppliers are at hand.
quarter 39, basis points, and
The many.
With suppliers overall.
Product operations.
He has growth of the many supplies.
To improve.
Update on our e-commerce.
We?
Come.
And share.
On the channel.
You've heard us.
Line for growing.
The.
and,
Number of green shoes to improve movement in the right direction. You heard us say this, we've also launched partnership growing and
That we need.
and,
We also want we wish to card alternative quarters.
These platforms launched in western Canada.
Rolling out.
2025.
We wish.
and I have,
be not feel and
I'll turn it over to Matt in Q2 we deliver another quarter of solid. Thank you.
good afternoon January after why improving our providing to the common and of course, we've been saying as well as
Improvement and open it up for your questions. Thanks for lowering inflation. Q2, we delivered another
quarter.
Domination of January.
will help generate improved profit combination of consumer behaviors, beginning of
Uh, of the Angel and Cheryl are there any strong?
To 8 million lower than last year.
So it's good in this 47, high and Light.
Income and share.
and,
as was about,
To be the main is right.
6 cons.
The less than 2 weeks.
In e-commerce, across all these days.
She needs to be the main fuel.
I need.
That.
but we
A consequence of.
My name, including fuel.
Begin with the Improvement and we delivered it, she won.
As well for all points of margin expansion.
For the last few for 2.4.
Which is lower than the.
and increase we saw and
growth in Ash.
Band for excluding.
As in price.
Tools and Technology to support excluding adjusting.
Control.
To improve.
Gradually Improvement for the increase. We had in q1.
Earnings last year.
From me, were higher than expected.
Due to their position that reflected best possible.
Call.
Remaining continue.
We expect.
And share.
In the rain, the rain will provide you another day on a full year guys. We expect this range will be generated 5.8% for the full year.
And we will provide.
Last year's tax rate had a large bar effectively like Q2 was trying as well as when a listing done some investors higher than the 22%.
Well, not impact the book usual transaction list of differential large.
Properties, we continue.
5, okay, sales driven by solid generation that are effective in tax rate will be between 2022.
Was 149 million.
Mango.
And I see about she remains strong. Remain on pain.
Hospitals.
for the
being.
5.6 hours.
The top 1.
Consideration.
To add incremental sales.
To let me rock loyalty.
The top 1, I think.
Right to expand.
Grow.
Well, set up the future.
and the
expand gross margin.
so, we're well set up for the future, particularly we will now
Congratulations. Please press the star.
You will hear that the handset before
we will now begin the question and answer session.
Should you have a question comes first?
You will.
see a smaller because
in every
session.
That.
Most.
In.
So that, yeah.
and,
In the basket.
We know.
For the last.
Transaction.
With small.
And recent points.
Exactly.
Indicator showing improvements. There's many, many components of
Because it's the basket.
congratulate exactly doing this also
and then,
um, so
The contribution.
Order.
Actually indication that we also.
As we?
A year.
Expect.
We?
20 basis.
Yeah. Yeah.
See how that?
Continuing trend.
Issue.
Now.
The good news.
Is that for each? Yeah, I think everyone and
have a
lot of making.
Now.
Hi. Thanks for the question, everyone.
For initiative.
you're doing in terms of how
you referring to is there.
Anything.
More.
In the fresh business team.
We're seeing.
And monitoring.
Which is the more strength.
That turns.
To. That is very nice. All the
our lending is the orange are
and,
That will.
Only.
Be an initiative are lending in store, okay?
In Ontario, just curious.
That.
Refresh.
We're seeing.
Many.
We've already.
but we, we're seeing
the progress of both, you're going to see an entire many new,
We've already.
because we
Were.
Cro.
so well, and
so,
We?
A lot of money.
Yeah, we always are so.
We have.
We can I think we're a lot of money.
and now it's been
and,
take the
Renovation. But yeah.
Geography.
fees where we don't have coverage where we can take, we're seeing
that we can program.
And get a really pretty well.
Geographies where we don't have coverage where we can take more market share and where thank you. We can throw the customer and you're going to see that across.
Measured, Smart Way.
That's good for shareholders. Hi, thanks for taking my question.
I was wondering now that
Go ahead.
There's more.
I was wondering.
A large number.
Running.
But yeah, it's a big problem.
We're seeing your
and,
terms of using,
Stop.
Produces. But in the
Come on.
Which is nominal.
so, we're seeing
To be.
Market number of cotton.
Music. Well, again the 1 tracks, the country. Well ahead.
in terms of the number, but
you're right.
So far.
And not everyone.
Here.
The consumer is.
Surprising.
To.
and,
don't get me wrong and
people.
And by the way, this is gradually going to call it.
The other.
and,
gradually, we static and we
the word.
Good. I think.
But gradually.
We were right. You call them and a lot of the investors now did that but that is all we need honey.
A lot.
Different from the economics for the um that we from what we're seeing on the ground. So yeah, that's what I know. I I know I
Change. Some people Beyond me at the economics for the
report.
Um, that we get from from people. Or from what we're
Question comes from Michael.
Good afternoon.
Um,
I wanted to get back to the store expansion. Uh, you haven't had a lot of
questions, come from my club and I, I
Think 16.
I wanted to get back to the store explosion.
And you're right in terms of your summary.
Yeah.
so,
Yes. So we
yeah.
Our reality, what?
and that we're, you know, very
Returns on.
And what would be?
We can.
and our
I believe.
An offer double.
What?
and,
this is,
Next year.
and this is,
To.
Not a lot of them are big stores.
And then there's, you know, in terms of square, we'll get back to you, I don't have it. And then on the discount,
something in the,
on the
yeah.
Right.
We're gonna have.
55 or more.
See.
Very transparent today. So we're not going to cover up. We're going to have the end of after 2 7 5.
Thank you can probably see through.
and,
Is in the office.
Timing.
That kind of pace that you're going to call with like in 2%.
yeah, that's
kind of,
Excluding.
You will.
so,
That.
And usual.
Results. There's No 1 behind.
So we will.
That.
As well as we gave.
We achieved with 2.4% increase. I will be very happy with that.
Thank you so much.
To see.
By your commentary around. Some of the work you've done on supply chain.
and,
You could talk.
About.
So yeah.
Hero.
Good job. Very good.
and,
Is.
because,
This is all.
and all I see is,
Closed.
To West.
We make.
in their out about
That's really helpful.
That you can get out of.
That.
Store.
We?
so,
thank you.
and just
um,
And I know that.
Pharmacy is a relatively smaller piece of your business. I do have a lot of things.
Here.
Pharmacy is a relative.
Of you're right.
Is.
Well, right now.
Contribute. Um,
Which offer is operating resolved and Improvement, or well right now and in a country.
Doing a good job.
We have a timely question that we had.
A strategy to refer to.
And resolve.
Our fees.
and so, I think we
left side.
That on a strategy and improved in the morning.
although,
That's how you.
To resolve that can be.
Yeah, there.
Working hard on that.
Come back to the topic of square footage.
In the street.
and it is accelerating or
Larger players, we we've all seen what's happening.
I,
Wonder what you think of the industry or not and elevated level from.
Some of the country down, I wonder.
What you think about?
The weather. I don't rational.
Decisions. That's a good question. We'll have to see
I don't know the inner workings of other companies that I like, but they're making my money and
continue to do that.
Now.
as we, we might drive, but
different.
Can handle.
Right now.
But at the same time,
Where we're?
we're going to do some so I I think as I think the
that we're, we're
Like better, understand.
And average of, I think you guys 75.
so,
The target takes for the face and I should be in his Lounge. We expect I have Rich deadline.
Second half. Last.
Year. So um, is there
uh,
Um, last year.
Yeah. All right. Expectations are
Just 1.
Minute.
Subsequent.
For.
From these partners. And then you had just 1 more on eCommerce. I wonder if you can talk about that. Yeah, it's partnership Michael.
A couple weeks ago.
Our customers.
For it allows us to hit up. We were finishing out on.
we're seeing that very, I with our very happy with so early though and very early for data if it allows us
It's not.
Over.
With our capturing.
More data.
Um bills that we went on as what it is. I think it's good now. I think we're
We're leaving the business too. With your customers, happy and their shareholders happy.
At.
Afternoon.
And a couple follow-ups. Um,
Specifically on this.
you know, we
Shifts in consumer spending patterns.
Uh, over.
The described to.
Trace that.
Would you say those are? We've heard a lot of
Of.
You know.
Describe to.
Trade.
Versus fresh or lower quality cure in products.
if you say, those are reversing along with the
Behaviors.
Straight down to.
the thing we're seeing right now,
Is exactly happening right now, gradually.
Coming back.
Which is.
Thank you. And and
Curious.
Composition.
but,
Did the shift, okay?
Has shifted at all. Uh, I know it's a different business space line and
And talk to, some of the people in term of customer occasion. But did the shift in the
That you're seeing.
Are those mirrors in in the online business? But I did see a big change.
We?
And what? I
Position.
Non.
You know.
But I don't have to look at the position.
And they just the last.
Earlier.
If you.
Know where you are at.
um,
in the
uh, of shrink level just
Earlier, but I think.
We think you material.
That of where you are.
Level.
Expect that.
Bigger Tailwind.
A different.
Reality of that today.
Improvement.
Because we always,
Continue.
Resolving.
Last.
but,
I believe there's still afraid.
To.
Improve our strength.
Okay.
Very helpful.
Appreciate all.
That.
Thank you for the next question.
Please go ahead.
Okay, just a quick 1 very helpful, appreciate all the comments.
In the last. Um,
I just come 27. Thank you for the question, is the follow up from
that to be more conversions, or
You mentioned that you want to get to that?
To be more conversions.
Have been done.
That might be 2 or 3.
Versions.
That might be 2 or 3.
Okay.
In conversion to Fresh CEO. And thank you. I will turn the call back over to Katie Brian for closing comments.
Great. Thank you Joanna. We appreciate your continued interest in Empire. If there are any unanswered questions, please contact me by phone or email.
We look forward to having you join us.
In comments talk soon.
We will look forward to having you join us for a third quarter.
20.
Conference.
and,