Key Points – North West posted higher Q1 net earnings even though consolidated sales fell 1.5%, helped by margin improvement from its Next 100 program, an asset sale gain, and lower share-based compensation. – International results were strong, with same-store sales up 4.3%…
erall and general merchandise up 8.7%, offsetting softer Canadian demand and foreign exchange pressure. – Management expects fuel costs and settlement payment timing to remain key variables, while continuing to push Next 100 initiatives aimed at improving assortment, procurement, private label growth, and cost efficiency. North West (TSE:NWC) reported higher first-quarter earnings despite lower consolidated sales, as margin improvements tied to its Next 100 program, an asset sale gain and lower share-based compensation helped offset weaker Canadian sales and inflation-related cost pressures
President and Chief Executive Officer Dan McConnell said the quarter reflected “the resilience of our business and our ability to adapt and deliver performance within a challenging and shifting economic environment.” Consolidated sales decreased 1.5% in the quarter, as same-store sales gains in the company’s international operations were more than offset by foreign exchange impacts and lower sales in Canada. Net earnings increased 5.4% in the quarter. Gross profit rose 0.6%, supported by a 72-basis-point increase in gross profit rate, which McConnell attributed to merchandising assortment refinements, procurement improvements and an expanded private label offering under the company’s Next 100 program.
International Gains Offset by Softer Canadian Demand North West’s international operations posted a 4.3% increase in same-store sales, building on a 2.8% gain in the prior-year quarter. General merchandise same-store sales in the international segment rose 8.7%, following a 5.2% increase a year earlier. McConnell said the international gains were supported by “a solid tourism season in the Caribbean” and…