Empire Company Shares Climb on Broad Market Rally, Strong Earnings Underpin Gains

Empire Company (TSX: EMP.A) shares gained 1.8% to reach CAD $46.66 in Thursday's session, with the advance primarily driven by a buoyant rally across the broader North American stock market.

Market-Driven Momentum

The move comes amid a widespread risk-on environment, with major U.S. indices posting robust gains. The S&P 500 was last seen up 1.4%, while the tech-heavy Nasdaq Composite climbed 2.1%. This positive sentiment is lifting equities across sectors, including consumer staples stocks like Empire, which operates grocery banners such as Sobeys, IGA, and FreshCo.

Empire's defensive profile, rooted in the non-discretionary nature of grocery sales, often attracts investor interest during periods of economic uncertainty. However, the stock is also benefiting from the current broad-based market strength.

Strong Fundamentals Provide Support

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Underpinning the stock's performance is the residual positive sentiment from Empire's first-quarter fiscal 2027 earnings report, which was released on September 10. The company announced record results that continue to provide a solid fundamental floor for its shares.

Key figures from the report include:

• Record quarterly diluted earnings per share (EPS) of CAD $1.04, a 14.3% increase year-over-year.
• Total revenue of CAD $8.48 billion.
• EBITDA growth of 6.1% to CAD $712 million.

Following the strong results, management raised its full-year store-opening target to more than 25 locations and guided for adjusted EPS growth at the high end of its long-term 8% to 11% framework. CEO Pierre St-Laurent noted at the time that the company's "growth initiatives are gaining traction, and our focus on productivity and efficiency is delivering results."