North West prospers in its remote niche markets

Article Excerpt

The long-term outlook for North West Co. and its investors remains positive. That’s especially so for its operations in the North, including Alaska, where the company holds a dominant market position. NORTH WEST COMPANY, $35.16, is a buy. This retailer (Toronto symbol NWC; TSINetwork Rating: Extra Risk) (www.northwest.ca; Shares o/s: 48.0 million; Market cap: $1.7 billion; Divd. yield: 4.2%) sells food, and everyday products and services through 244 stores. Those locations are mainly in northern communities across Canada and Alaska. Through your shares, you also tap the company’s operations in remote regions of Hawaii, the wider South Pacific and the Caribbean. In the quarter ended April 30, 2022, sales rose 0.2%, to $552.0 million from $551.0 million. Same-store sales fell 0.7%. Notably, same-store sales were up 21.3% compared to the same (pre-pandemic) quarter in 2019. Earnings in the quarter fell 17.8%, to $31.2 million, or $0.65 a share, from $37.9 million, or $0.78. The decline was due to higher costs. Meanwhile, with the October 2021 payment, North…

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