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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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