The North West Company Inc. Announces First Quarter Earnings

(TSX:NWC): The North West Company Inc. (the "Company" or "North West") today
reported its unaudited financial results for the first quarter ended April 30,
2014. It also announced that the Board of Directors have declared a dividend of
$0.29 per share to shareholders of record on June 30, 2014, to be paid on July
15, 2014.


Financial Highlights

Sales increased 3.2% to $376.3 million compared to $364.5 million in the first
quarter last year as sales growth in the International Operations and the impact
of foreign exchange on the translation of U.S. denominated sales more than
offset weaker sales in the Canadian Operations. Excluding the foreign exchange
impact, sales increased 0.3% and were up 0.2%(1) on a same store basis. Food
sales(1) increased 1.0% and were up 0.7% on a same store basis and general
merchandise sales(1) decreased 2.1% and were down 1.8% on a same store basis.


Earnings from Operations(2) decreased 2.6% to $20.0 million compared to $20.5
million in the first quarter last year. Gross profit dollars increased 2.4%
driven by sales growth as gross profit rate decreased 24 basis points compared
to last year. The decrease in gross profit rate was largely due to lower food
margins in the Canadian Operations. Selling, operating and administrative
expenses increased 3.6% compared to last year and were up 8 basis points as a
percentage to sales. The increase in expenses is primarily due to the impact of
foreign exchange on the translation of U.S. denominated expenses. Excluding the
foreign exchange impact, earnings from operations decreased 4.1% compared to
last year.


Trading profit(2) or earnings before interest, income taxes, depreciation and
amortization (EBITDA) increased 0.7% to $30.2 million compared to $30.0 million
last year, as a 5.0% increase in trading profit in the International Operations
and the impact of foreign exchange was partially offset by a decrease in trading
profit in the Canadian Operations related to lower food gross profit rates.
Excluding the foreign exchange impact, trading profit decreased 1.2% compared to
last year and as a percentage to sales was 8.1% compared to 8.3% last year.


First quarter net earnings decreased 1.8% to $12.7 million and diluted earnings
per share decreased to $0.26 per share from $0.27 per share last year.


"Our business assessment tells us we have terrific upside by reinvesting in our
largest markets, fastest growing categories and in our store management and
staff", President & CEO Edward Kennedy commented. "These will be our priorities
for the next three to five years. They play to our core strengths and give us
the ability to increase sales profitably regardless of the economic environment
we face".


Further information on the financial results is available in the Company's first
quarter report to shareholders, Management's Discussion and Analysis and
unaudited interim condensed consolidated financial statements which can be found
in the investor section of the Company's website at www.northwest.ca.




(1)  Excluding the foreign exchange impact                                  
(2)  See Non-GAAP Measures Section of Management's Discussion & Analysis    



Webcast for 2014 Annual General Meeting

North West is hosting a webcast of its annual general meeting of shareholders.
To access the meeting, log onto http://www.gowebcasting.com/5380. Shareholders
viewing the webcast will not be permitted to vote through the webcast, but will
be permitted to ask questions of management. The webcast will be archived and
available at www.northwest.ca.


First Quarter Conference Call

North West is also hosting a conference call for its first quarter results on
June 11, 2014 at 3:00 p.m. (Central Time). To access the call, please dial
416-340-2217 or 866-696-5910 with a pass code of 9296035. The conference call
will be archived and can be accessed by dialing 905-694-9451 or 800-408-3053
with a pass code of 9122089 on or before June 18, 2014.


Notice to Readers

Certain forward-looking statements are made in this news release, within the
meaning of applicable securities laws. These statements reflect North West's
current expectations and are based on information currently available to
management. The words may, will, should, believe, expect, plan, anticipate,
intend, estimate, predict, potential, continue, or the negative of these terms,
identify forward- looking matters. These statements speak only as of the date of
this press release. The actual results could differ materially from those
anticipated in these forward-looking statements.


Reliance should not be placed on forward-looking statements because they involve
known and unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of North West to differ materially
from anticipated future results, performance or achievement expressed or implied
by such forward-looking statements. Factors that could cause actual results to
differ materially from those set forth in the forward-looking statements
include, but are not limited to, fluctuations in interest rates and currency
values, legislative and regulatory developments, legal developments, the
occurrence of weather- related and other natural catastrophes, changes in tax
laws, and those risks and uncertainties detailed in the section entitled Risk
Factors in North West's Management's Discussion and Analysis and Annual
Information Form, both for the year-ended January 31, 2014. The preceding list
is not an exhaustive list of possible factors. These and other factors should be
considered carefully and readers are cautioned not to place undue reliance on
these forward-looking statements. North West undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, other than as required by
applicable law.


Company Profile

The North West Company Inc., through its subsidiaries, is a leading retailer of
food and everyday products and services to rural communities and urban
neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean. North
West operates 226 stores under the trading names Northern, NorthMart, Giant
Tiger, AC Value Center and Cost-U-Less and has annualized sales of approximately
CDN$1.5 billion.


The common shares of North West trade on the Toronto Stock Exchange under the
symbol NWC.


FOR FURTHER INFORMATION PLEASE CONTACT: 
The North West Company Inc.
Edward Kennedy
President and CEO
204-934-1482
204-934-1317 (FAX)
ekennedy@northwest.ca


The North West Company Inc.
John King
Chief Financial Officer
204-934-1397
204-934-1317 (FAX)
jking@northwest.ca
www.northwest.ca
The North West (TSX:NWC)
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