North West Company Reports Strong Second-Quarter Earnings

WINNIPEG, Manitoba, Sept. 08, 2026 /CourierPR/ -- The North West Company Inc., a leading retail company, announced its second-quarter earnings and a hike in its quarterly dividend on August 31, 2026. The company reported strong sales growth, driven by same-store sales gains, contributing to solid increases in EBITDA and adjusted net earnings.

North West Company's sales for the second quarter ended July 31, 2026, increased by 5.4% to $682.0 million compared to $647.0 million in the same period last year. This growth was attributed to a 6.7% rise in same-store sales, which were particularly strong in Canadian Operations, up by 7.4%. The growth in International Operations also contributed positively with a 5.8% increase in same-store sales.

The company's gross profit increased by 5.7% to $232.4 million, reflecting an 8 basis point improvement in the gross profit rate. This improvement was due to positive impacts from the Next 100 initiatives, including refined merchandise assortment and procurement, and changes in the sales blend. However, the company faced challenges from higher fuel-related freight costs, which more than offset these gains.

Selling, operating, and administrative expenses increased by $9.8 million, or 6.0%, compared to the previous year, but the percentage of these expenses to sales remained steady at 13.6%. The rise was attributed to inflationary wage increases, depreciation costs from store renovations, and other inflationary pressures. Despite these costs, the company maintained a disciplined focus on productivity improvements through its Next 100 work.

Earnings from operations increased by $2.6 million, or 4.7%, to $57.8 million, while earnings before interest, income taxes, depreciation, and amortization (EBITDA) grew by $4.6 million, or 5.4%, to $89.8 million. Adjusted EBITDA, which excluded certain non-core factors, saw a 5.6% increase to $92.8 million.

Net earnings for the quarter were $38.3 million, up 1.9% from $37.6 million in the previous year. Diluted earnings per share stood at $0.76, a slight increase from the $0.74 reported last year. Adjusted net earnings also showed a 2.4% rise to $40.6 million, reflecting the positive financial performance.

In related news, the company's board of directors declared a quarterly dividend of $0.42 per share, an increase of 2.4% from the previous dividend of $0.41. This dividend will be paid on October 15, 2026, to shareholders of record as of September 30, 2026.

Dan McConnell, President & CEO of North West Company, commented, "We delivered strong second-quarter sales growth driven by same-store sales gains that reflect momentum across the business. These sales gains, combined with continued progress on our Next 100 initiatives, contributed to solid increases in EBITDA and adjusted net earnings in the quarter."

Despite the challenges posed by higher fuel-related freight costs, the company remains optimistic about the business momentum and its ability to mitigate these pressures through disciplined execution and productivity improvements.