Q: Is it just the impact of the wildfires causing the big price drop today?
5i Research Answer:
NWC reported earnings, and sales missed estimates. EPS was 53c vs 53c last year and estimates of 57c; revenue of $641.4M rose 3.9% year over year but missed estimates of $650.7M. Comparable sales were +3.5% vs 3.8%. EBITDA rose 10% to $78M and beat estimates of $74.6M. Selling, general and admin expenses rose 8.7%, higher than sales growth, as NWC increased spending for its Next 100 initiative and add IT costs. The stock is up (still) 17% over one year. The fires are not helping, and NWC has had to close stores, but some of the impact may be felt in the next quarter.