Just caught the latest Loblaw earnings and honestly it's a mixed bag. TSE:L dropped over 2.5% even though the numbers look decent on paper. Net earnings hit $777 million, about $2.53 per share, which beat last year's $621 million pretty clearly. Revenue also climbed to $18.54 billion from $18.27 billion, so that's solid growth.

But here's where it gets interesting - same-store food sales only went up 1.3%, and apparently Canadian Thanksgiving timing messed with their numbers this quarter. Drug sales did better at 2.9% growth, but front-store stuff actually dropped 0.5%. Sounds like people are really cutting back on discretionary stuff like electronics, which honestly makes sense with how people are spending these days.

What caught my attention is they're actually raising guidance now to low double-digits for the year, up from high single-digits. They're also getting rid of exclusivity clauses in store leases, which is kind of a big move. More foot traffic in stores but customers are hunting deals and essentials, not splurging. TSE:L seems to be adapting to how people are actually shopping right now.

The stock reaction is weird though - usually when a company beats earnings and raises guidance you'd see more upside. Guess the market was expecting something different. Anyone else watching TSE:L or think the guidance bump is actually bullish here?