The North West Company (NWC) Q1 2027 earnings summary

Executive summary

• Net earnings increased 5.4% year-over-year, driven by strong international operations, expense reductions, and a gain from asset disposition.

• Consolidated sales decreased 1.5% as international same-store sales gains were offset by FX and lower Canadian sales due to reduced benefit payments and the end of the Inuit Child First Initiative food voucher program.

• The Next 100 program drove gross profit rate improvements through merchandising and private label expansion, with one-time costs of $1.9 million.

• Dividend of $0.41 per share declared, payable July 15, 2026.

Financial highlights

• Consolidated sales decreased 1.5% year-over-year to $631.6 million; excluding FX, sales declined 0.4%.

• Gross profit rose 0.6% to $215.3 million, with a 72 basis point increase in gross profit rate.

• EBIT increased 7.5% to $43.4 million; EBITDA up 5.8% to $74.2 million.

• Net earnings grew 5.4% to $29.2 million; diluted EPS was $0.56, up from $0.53 last year.

• Adjusted EBITDA fell 2.7% to $75.8 million; adjusted net earnings dropped 9.9% to $30.3 million.

Outlook and guidance

• Canadian operations expected to benefit from First Nations Child and Family Services settlement payments, but distribution has been slower than anticipated and is expected to continue into 2026.

• Higher oil and fuel costs are expected to persist, impacting freight and utility expenses, especially in remote communities.

• The Next 100 program will continue to focus on cost efficiencies and private label expansion.

• International sales momentum expected to continue, with a new 55,000 sq ft Guam store opening in Q4 anticipated to boost sales.

• Management remains confident in long-term strategy despite near-term variability from rising fuel costs and government infrastructure investment pace.