Canada's North West Company Q1 sales miss estimates as foreign exchange impacts results
Canada's North West Company Q1 sales miss estimates as foreign exchange impacts results
Overview
Canada food retailer's Q1 sales fell 1.5% and missed analyst expectations
Q1 diluted EPS rose to C$0.56 from C$0.53 yr/yr
Net earnings rose as gross profit rate improved and asset sale boosted results
Outlook
Company says rising fuel costs and government investment pace may impact near-term results
Result Drivers
CONSOLIDATED SALES- Decreased compared to last year due to the impact of foreign exchange on the translation of International Operations sales and a decrease in Canadian Operations sales
INTERNATIONAL SAME-STORE SALES - Q1 same-store sales growth in International Operations offset some weakness in Canadian Operations, per CEO Dan McConnell
CANADIAN SALES HEADWINDS - Sales in Canadian Operations fell due to the end of the Inuit Child First Initiative food voucher program and lower funding from related programs
MERCHANDISE ASSORTMENT CHANGES - Gross profit rate improved due to changes in merchandise assortment and procurement, including more private label products
Company press release: ID:nGNX2Cy74B
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Miss | C$631.60 mln | C$643.83 mln (3 Analysts) |
Q1 EPS |
| C$0.56 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy"
Wall Street's median 12-month price target for North West Company Inc is C$63.00, about 18.1% above its June 9 closing price of C$53.36
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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