Richelieu Hardware Ltd Q2 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : What can you tell us about the quality of the new acquisition and your forays into stairs, banisters and railings?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : That's good color. And as you're adding more distribution centers in territories that are already covered, do you have any plans to rationalize or close any in the coming quarters?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Excellent. So moving on to the inventory question. Last quarter, it was a little heavy due to softer retailer sales. Are you able to quantify the impact that rebalancing your inventory had on Q2 results? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JULY 04, 2019 / 6:30PM, RCH.TO - Q2 2019 Richelieu Hardware Ltd Earnings Call

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : And given that they're not buying much and you're still seeing the pressure there, how do you view your -- how do you view the likelihood of a recovery in that section? Do you have any information on end markets there?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : So then would it be fair to assume that Canadian retailer sales will continue to decline year-over-year for the rest of 2019?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Did you say fourth quarter?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : That is good color. So as the Canadian market continues to soften and the U.S. portion of the business grows, would it be fair to assume that you'll see margin pressure in the back half of the year then?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : And looking out to 2020 and beyond, do you see margin erosion as you expand the U.S. offering or further stability?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Perfect. And just to close out for me. Could I get some additional color on the geographic performance in Canada in the East, West and Ontario?