Empire Company (EMP-A) Q3 2025 earnings summary

Executive summary

• Q3 sales reached $7,725.2 million, up 3.1% year-over-year, with same-store food sales growth of 2.6% and strong performance in both full-service and discount banners.

• Gross margin improved by 43 basis points to 27.0%, driven by operational efficiencies and shrink reduction.

• Adjusted EPS was $0.62, flat year-over-year, with net earnings at $146.1M; core operations improved after adjusting for lower other income and equity earnings.

• E-commerce sales grew 72% year-over-year, led by Voilà and expanded partnerships with Instacart and Uber Eats, now available nationwide.

• Leadership transition announced: CFO Matt Reindel retiring, Costa Pefanis to join as new CFO in May, with a transition period planned.

Financial highlights

• Gross profit for Q3 was $2,083 million, up from $1,987 million in the prior year.

• Adjusted EBITDA for Q3 was $565 million, with a margin of 7.3%, consistent year-over-year.

• Free cash flow for Q3 was $148 million; capital expenditures were $188 million, focused on store renovations and new stores.

• Year-to-date adjusted EPS was $2.24, up from $2.11 in the prior year.

• Dividend per share increased to $0.20, payable April 30, 2025.

Outlook and guidance

• Fiscal 2025 capital spend is expected to be ~$700 million, with half allocated to renovations and new store expansion.

• Pre-tax earnings from other income plus share of earnings from investments expected at the higher end of $135–$155 million range.

• Long-term adjusted EPS growth targeted at 8% to 11%, driven by sales, gross margin, and EBITDA improvements.

• Effective tax rate for fiscal 2025 estimated at 25-27%.

• Net square footage growth targeted at 1.5% starting in fiscal 2026.