The North West Company Inc., the Canada-based retailer with presence in the Caribbean region, announced its unaudited financial results for the second quarter ended July 31, 2018. According to the company President and CEO Edward Kennedy, company’s new business investment in the Roadtown Wholesale Trading Ltd. in the British Virgin Islands contributed at or above expectations and brought positive results.
Company’s consolidated sales in the second quarter decreased 2.2% to US$503.8mln because of negative impact of store closures related to hurricanes in the Caribbean and BVI. Gross profit of the company increased 0.5% , mainly because of the change in product sales blend. Selling, operating and administrative expenses increased 4.8%, primarily due to a $6.5mln increase in share-based compensation expenses, NSA expenses and new stores in Canadian operations.
Earnings from operations decreased 16.2% to US$27.8mln, compared to US$33.2mln in the same quarter of the previous year. Net earnings decreased 20% and made US$18.6mln; net earnings attributable to shareholders of the company were US$17.6mln, and diluted earnings per share were US$0.36, compared to US$0.46 last year. Adjusted net earnings decreased 5.4% due to the impact of the hurricane-related store closures.