RE:RE:Power of the USDNo, the strong exchange is not good for LIQ
Most of the liquers sold in the stores are imported (whiskeys from US, Rum from Carribeans, Brandies/Cognacs and wines from Europe .. etc)
Since the vast majority of the revenue/sales is in domestic/Canadian market, the margins are going to be squeezed as the unemplyed Albertans have less money to spend on imported booze.
The assuptions that they will turn to cheaper or domestics brands, as they do have the "time and mood to socialize" consuming their EI cheques
The attempt to diversify into US makets in Alaska (oil dependent state by itself), Kentucky, NJ, and MA ... is in order to reduce this margin squeeze, but for now, Canada, and specially AB are about 70% of the LIQ market.
d_trump wrote: yes, the strong USD is good for LIQ. Their US store count is less than 20%, but they are larger format stores on average, so with the recent additions, US revenue will be about 35% going forward. They do have some USD corporate expenses so that will take away a little. But I think their debt is all CAD so that is good as well. Net net, the strong USD will definitely help offset the Alberta weakness.