Canadian Tire Corporation Reports Continued Momentum in Second Quarter Results

TORONTO, Aug. 8, 2019 /CNW/ – Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.A) today released second quarter results for the period ended June 29, 2019.

“Our top-line results this quarter and our continued momentum year-to-date position us well as we enter the second half of 2019. Our exclusive brands and products are clearly resonating with our customers, and through our Triangle Rewards loyalty and credit card programs they are engaging with us more often and shopping across our channels and banners, signaling the effectiveness of our growing Triangle marketplace,” said Stephen Wetmore, President and CEO, Canadian Tire Corporation. “We are executing well against our ambitious growth agenda. Our latest additions of Party City’s Canadian business, Paderno U.S., and several iconic bicycle brands, including Raleigh, Diamondback and Redline are perfect examples.”

“Over the past year, our teams have made excellent progress on our One Company, One Customer strategy by investing in new business capabilities across CTC, including the launch of our Triangle Rewards loyalty and credit card programs, deliver-to-home at CTR, enhanced data analytics, improved digital experiences, and the addition of Helly Hansen to our consumer brands portfolio. While we will continue to make such investments to drive top-line growth, we are committed to a greater focus on bottom-line performance. High quality investments and improved operational efficiencies will help us achieve our financial aspirations as we seek to become the #1 retail brand in Canada by 2022,” added Wetmore.

CONSOLIDATED OVERVIEW

  • Consolidated retail sales increased $53.6 million or 1.3% in the second quarter. Excluding Petroleum, consolidated retail sales were up 2.3% over the same period last year.
  • Consolidated revenue increased $205.8 million, or 5.9%. Excluding Petroleum, consolidated revenue increased $232.8 million, or 7.9% in the quarter.
  • Diluted EPS was $2.87, an increase of 20.5%, normalized diluted EPS was $2.97 up 13.8%

RETAIL OVERVIEW

  • The following financial results reflect Q2 2019 performance compared to Q2 2018.
  • Retail segment revenue increased 5.7%. Excluding Petroleum, retail segment revenue increased 7.8%.
  • Canadian Tire saw retail sales increase 2.1% and comparable sales were up 1.9%.
  • SportChek’s retail sales increased 3.0% and comparable sales increased 3.7%.
  • Mark’s retail sales grew 2.7% and comparable sales increased 2.6%.
  • Helly Hansen revenue in the quarter was $98.6 million.
  • Income before income taxes decreased $10.8 million, normalized income before income taxes decreased $11.8 million.

To view a PDF version of Canadian Tire Corporation’s full quarterly earnings report please see:

https://mma.prnewswire.com/media/958096/CANADIAN_TIRE_CORPORATION__LIMITED_Canadian_Tire_Corporation_Rep.pdf

Announced separately today, Canadian Tire Corporation has entered into an agreement to purchase Party City’s Canadian business for $174.4 million (including ~$40 million in inventory). Details can be found at: https://www.newswire.ca/news-releases/canadian-tire-corporation-to-acquire-party-city-s-canadian-business-858924226.html

2019-08-08T06:37:11-04:00 August 8th, 2019|