Jewett-Cameron's Q2 net loss more than doubles as below-cost inventory sales crush margins

Jewett-Cameron Trading

13/04/2026 21:18

Overview

U.S. outdoor products maker's fiscal Q2 revenue rose 16% yr/yr, driven by inventory liquidation

Gross margin fell due to sales of inventory at or below cost and higher mix of low-margin products

Company's net loss for Q2 more than doubles as cost pressures from tariffs and logistics persisted

Outlook

Jewett-Cameron aims to reduce annual operating expenses by $1 mln to $3 mln

Company focused on monetizing non-core assets and exploring divestitures, partnerships, and collaborations

Company intends to exit fiscal 2026 with a sustainable long-term business model

Result Drivers

INVENTORY LIQUIDATION - Revenue growth was driven by liquidation of slow-moving pet inventory and excess cedar fencing, which will not be repeated in future periods

SALES BELOW COST - Gross margin fell as company sold inventory at or below carrying value to accelerate cash conversion

TARIFF AND COST PRESSURES - Higher raw material, shipping and logistics costs, and new import tariffs continued to pressure margins

Company press release: ID:nGNX8gqM4d

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$10.50 mln
Q2 EPS
-$0.35


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)