Alimentation Couche-Tard earnings drop as consumers watch spending

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The company says the earnings decline was in part from lower gross margins on fuel, the quarter being a week shorter than last year, and expenses and deprectiaion related to investments and acquisitions

Alimentation Couche-Tard Inc. says its net earnings fell by almost a third in its fourth quarter as inflation-squeezed consumers watch their spending.

Alimentation Couche-Tard Inc. says its net earnings fell by almost a third in its fourth quarter as inflation-squeezed consumers watch their spending.

The convenience store giant says net earnings attributable to shareholders totalled $453 million in the quarter ending April 28, down from $670.7 million in the same quarter last year.

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Same-store merchandise revenue was down 0.5 per cent in the U.S., by two per cent in Europe and by 3.4 per cent in Canada because of lower discretionary spending.

Chief executive Brian Hannasch says in a statement that it was no doubt a challenging quarter, but even with the decline in same-store sales he remains optimistic about the business.

To adapt, Hannasch says the company has been working to expand its loyalty program, launch summer drink promotions and improve employee training.

 

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