Jewett‑Cameron Trading Company Ltd. reported fiscal 2026 second‑quarter revenue of $10.5 million, a 16 % increase from $9.1 million in the same period a year earlier. The increase was largely driven by the liquidation of excess cedar fencing and slow‑moving pet inventory, which also cut inventory levels by 30 % from the prior quarter and 36 % from the year‑ago period.
Despite the revenue growth, the company posted a net loss of $1.2 million, or $‑0.35 per share, compared with a net loss of $573,000, or $‑0.16 per share, in Q2 2025. The widening loss reflects the impact of lower‑margin sales and write‑downs associated with the inventory clearance.
Gross profit margin fell to 15.7 % in Q2 2026 from 20.1 % in Q2 2025, and improved from a negative 12.5 % margin in Q1 2026. The compression is attributed to the sale of inventory at or below cost, higher raw‑material and shipping costs, and tariff‑related cost pressures.
Management highlighted a 27 % reduction in headcount and a $1.3 million cut in wages and benefits, part of a broader effort to trim operating expenses. The company also continues to monetize non‑core assets, with the inventory liquidation contributing to the revenue bump but not to sustainable growth.
CEO Chad Summers said, 'Tariff uncertainty continues to create cost pressure and disrupt purchasing patterns, while soft consumer sentiment has weighed on discretionary spending creating broader impacts on the Company's do‑it‑yourself and home improvement professional customer base.' He added, 'We remain focused on completing the monetization of our remaining excess non‑core inventory while evaluating strategic partnerships and collaborations, and exploring potential divestitures involving select businesses and real estate assets. We remain committed to executing a dual approach of unlocking value from non‑core assets while exiting fiscal 2026 with a sustainable long‑term business model.'
The company’s Q1 2026 revenue was $8.7 million, with a net loss per share of $1.12, underscoring the ongoing profitability challenges despite the current quarter’s inventory‑driven revenue lift.
The results signal progress in inventory cleanup and cost discipline but also highlight that the company’s core metal‑fencing business remains under pressure. The continued margin compression and net loss suggest that the turnaround will require sustained demand recovery and further cost reductions.
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