Stock market news for investors: Metro profits rise, group explosives, closing some Canadian stores
“Agility is not a strategy, but it is the way we think,” he said in a call with analysts.
Its approach to this type of crime has come because clothing retailers have fallen into a world of uncertainty as the United States has been levied on dozens of countries.
Many responsibilities are directed at Canada, while others are directed at the giants in the world of clothing making, such as Bangladesh, Cambodia, China, India, Indonesia, Malaysia, Pakistan, Turkey and Vietnam.
International brands are worried that tariffs will weaken consumer spending and make production and transportation more expensive, forcing them to increase costs to consumers.
Lutfy believes his company is in good shape in the storm, partly because it “has raised prices much faster than inflation for years.”
“I know this won’t change anytime soon,” he said.
However, consumers may become less able to absorb the wear and tear of the tariff war, put pressure on their wallets and lead some to reconsider discretion such as clothing.
Although Lutfy acknowledged “there is anxiety there”, he believes clothing is more immune than motorboats, cars and furniture, noting that people often buy it with debt financing.
“In these recessions, it’s usually a lovely $30 top that gives a big smile on your face, sometimes it’s just about getting you through the week,” he said.
Even in a tough economic period, he was very confident in the average consumer’s interest in buying clothes, saying, “I actually like this time.”
“I have no problem,” he said. “In fact, we think it’s an opportunity to take market share.”
To accomplish this task, the company has been transferring its supply chain from China to Bangladesh, Cambodia and Vietnam.
The company has long planned to “get out of risk” by leaving China, but the tariff speech “escalated” the plan.
It also decided to sign an agreement with third-party logistics providers to open a U.S. warehouse in July this year, with the group’s explosives hoping to speed up shipping times.
Window Group Explosives provides operations as it reports that its fourth-quarter profit was $31 million, up from $28.6 million a year ago, with its revenue up 13%.
The profit was 28 cents per dilution period for the 13-week ended February 1, and the company’s fourth-quarter profit was 27 cents per dilution period, including 14 weeks.
Revenues for the quarter totaled $271.8 million, up from $240.3 million.
Groupe Dynamite attributes growth to 9.5% increase in comparable store sales and contributions to new stores.
Based on the adjustment, Explosives Group said that the diluted stocks each diluted share profit was 28 cents per diluted share, earning 33 cents.
