Increases Dividend and Continues Share Repurchase Program
TORONTO, Nov. 7, 2019 /CNW/ – Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.A) today released third quarter results for the period ended September 28, 2019.
“Our business is performing well and as one of Canada’s largest eCommerce retailers, having generated more than $500 million in sales in the last 12 months, we are exceptionally well-positioned as we head into our customers’ biggest spending season,” said Stephen Wetmore, President and CEO, Canadian Tire Corporation. “Operating as One Company across our multiple banners focused on serving One Customer has driven significant investments in our loyalty program, organizational structure and our data and digital infrastructure. We have been confidently focused on securing CTC’s long-term competitive positioning. Our ability to operate as One Company, having built the foundation supporting the most critical parts of our strategy, now positions us to focus on our Operational Efficiency program. I am pleased to announce that we have set our target at $200+ million in annualized savings by 2022.”
“We are also announcing our eleventh dividend increase in ten years and the continuation of our share repurchase program, now in its eighth consecutive year, both of which are further evidence of our ongoing investment in our Company and confidence in its long-term growth,” continued Wetmore.
- Financial results reflect Q3 2019 performance compared to Q3 2018.
- Retail segment revenue decreased $13.6 million, or 0.4%. Excluding Petroleum, retail segment revenue increased 1.2%.
- Canadian Tire Retail sales increased 2.7% and comparable sales were up 2.4%.
- SportChek retail sales were up 3.8% and comparable sales were up 4.6%.
- Mark’s retail sales grew 0.9% and comparable sales increased 1.2%.
- Helly Hansen revenue in the third quarter was $211.7 million, up 16.5%.
- Results normalized for costs incurred related to the acquisition of Party City related to the Company’s Operational Efficiency program in the quarter and for costs incurred related to the acquisition of Helly Hansen in the prior year.
- Income before income taxes increased $3.9 million, or 2.3%. Normalized income before income taxes increased by $3.6 million, or 1.9%.
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