“We achieved outstanding operational and financial results in 2020, driven by sustained strong growth in eCommerce and Owned Brands, and the addition of 1.8 million new customers to the Triangle Rewards program. Despite countless unprecedented challenges, our commitment to being there for Canadians was unwavering throughout the year. I am incredibly proud of all of our people across CTC, our Associate Dealers, and especially our frontline employees for their achievements, their support of one another and their continued commitment to serving our customers amidst the ongoing pandemic,” said Greg Hicks, President and CEO, Canadian Tire Corporation.
“Looking forward, the proven resilience of our business model, the strength of our Triangle Rewards program, and the relevance of our assortment position us well to continue engaging with our customers and supporting them in 2021 and beyond,” added Hicks.
CONSOLIDATED FINANCIAL RESULTS
The fourth quarter and full year 2020 results include one additional week of retail operations compared to the fourth quarter and full year 2019 results, except for comparable sales growth.
Operational Efficiency program
During 2020, the Company continued to focus on executing its Operational Efficiency program and related
initiatives and remains committed and on track to deliver its targeted $200+ million in annualized savings by 2022.
As part of this program, and, as the Company continues to evolve and grow its brand, a decision was made to
close all 18 National Sports retail stores and eCommerce channel to eliminate duplication across banners. The
costs associated with these closures included $9.5 million in inventory write-offs recorded in cost of producing
revenue and $17.2 million in asset write-offs recorded in other expenses (income).
SELECT ANNUAL HIGHLIGHTS
- CTC’s retail sales grew 11% (excluding Petroleum), primarily driven by 17.6% growth at CTR
- eCommerce sales reached $1.6 billion, up $1 billion or 183%, with CTR delivering over 250% growth
- Strong performance in the last half of 2020 resulted in full year normalized diluted EPS of $13.00, only slightly lower than 2019, despite the impact that the COVID-19 pandemic had on the operations and results in the first half of 2020
- Retail segment normalized earnings grew 15.7% for the year
- Cash and investments in the Retail segment grew by $196 million in the year, driven by higher retail earnings and lower capital expenditures
- The Company ended the year with $2.0 billion in cash and short-term investments and $3.0 billion, $3.9 billion, and $298.9 million in available liquidity in its Retail, Financial Services and REIT segments, respectively
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