By Shares of North West Co. saw a significant rally after the Canadian retailer announced an 18% increase in earnings for the latest quarter. The company operates under various trading names, including Northern, NorthMart, and RiteWay Food Markets.
The shares were up 13% in morning trading, reaching C$34.19, which helped narrow the year-to-date drop to 3.9%. To reward shareholders, North West Co. increased its quarterly dividend by 2.6% to 39 Canadian cents (29 cents) per share. Shareholders of record on September 29 will receive the dividend on October 13.
For the fiscal second quarter, North West Co. reported net earnings of C$38 million, up from C$32.4 million in the previous year. Adjusted earnings, excluding share-based compensation costs and an asset write-off related to the loss of the company’s Fox Lake store in Alberta, reached C$40 million for the three months ended July 31.
Sales for the quarter also showed healthy growth, increasing by 6.8% to C$618.1 million, or 4.7% on a same-store basis.
Overall, North West Co.’s strong performance and increased dividend demonstrate its commitment to delivering value to shareholders.
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