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WINNIPEG, Manitoba, Sept. 08, 2026 (GLOBE NEWSWIRE) — (TSX: NWC): The North West Company Inc. (the “Company” or “North West”) today reported its unaudited financial results for the second quarter ended July 31, 2026. It also announced that the Board of Directors has declared a quarterly dividend of $0.42, an increase of $0.01 or 2.4% per share, to shareholders of record on September 30, 2026, to be paid on October 15, 2026.
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“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,” said Dan McConnell, President & CEO. “At the same time, our results were impacted by unusually high fuel-related freight costs, driven by increases in global fuel prices. While the duration of these cost pressures remain difficult to predict, we are encouraged by the momentum in the business and remain focused on disciplined execution, strong expense management, and productivity improvements through our Next 100 work to help mitigate these pressures and continue creating value for our customers and shareholders.”
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Financial Highlights
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Sales Second quarter consolidated sales increased 5.4% to $682.0 million compared to $647.0 million last year due to strong same store sales gains, the impact of foreign exchange on the translation of International Operations sales and higher fuel-related inflation in retail prices which more than offset the impact of the closure of a store in Canadian Operations and sale of a store in International Operations in the first quarter. Sales excluding the foreign exchange impact increased 4.7%, with food sales increasing 4.1% and general merchandise and other sales increasing 6.6% compared to last year. Same store sales increased 6.7%1 compared to a 1.1%1 decrease in the second quarter last year led by a 7.4% increase in same store sales in Canadian Operations, which were negatively impacted by wildfire-related community evacuations in northern Canada in the second quarter last year, and a 5.8%1 gain in same store sales in International Operations.
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Gross Profit Gross profit increased 5.7% to $232.4 million compared to $219.9 million last year due to sales gains and an 8 basis point increase in gross profit rate. The increase in the gross profit rate is due to the positive impact from our Next 100 work, including refinements of our merchandise assortment and procurement, and changes in sales blend. These factors were largely offset by the impact of higher fuel-related freight costs passed through in retail prices without mark-up and price investments on certain food items to help reduce the impact of higher freight costs on customers.
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Selling, Operating and Administrative Expenses Selling, operating and administrative expenses (“Expenses”) increased $9.8 million or 6.0% compared to last year and were up 13 basis points as a percentage to sales. The increase in Expenses is largely due to an increase in staff costs in northern markets related to inflationary wage increases net of Next 100 productivity gains, higher depreciation mainly related to store renovations, an increase in fuel-related utility costs, an increase in technology costs and other inflationary cost pressures, partially offset by the store closures in Canadian and International Operations. The foreign exchange impact on the translation of International Operations expenses and a $3.0 million increase in share-based compensation costs primarily related to changes in the Company’s share price in the quarter compared to last year partially offset by a $2.4 million gain on the disposition of a non-core redundant asset in Canadian Operations. The impact of $1.3 million in one-time costs for professional fees related to the execution of the Next 100 strategy, which decreased compared to $1.7 million in the second quarter last year, were more than offset by the Next 100 gross profit factors previously noted.