Canadian Tire, Inc. reported SportChek’s retail sales were down 1.5 percent in the third quarter with comparable sales declining 1.0 percent over the same period last year.
In a statement, Canadian Tire said SportChek was facing “an exceptional back-to-school quarter in the prior year,” when comparable-store sales grew 11.2 percent. Growth in the latest quarter at the SportChek segment came from categories such as cycling and casual clothing, partially offsetting the decline in athletic clothing and footwear.
The SportChek segment includes stores that operate in Canada under the SportChek, Sports Experts, Atmosphere, Sports Rousseau, and Hockey Experts banners.
Revenue at the SportChek segment was Canadian$576.4 million against C$560.6 million a year ago, a gain of 2.8 percent.
Among its other businesses, Helly Hansen’s revenue of C$170.9 million was up 8.4 percent compared to the same period in 2021.
Canadian Tire Retail (CTR) comparable sales were up 0.7 percent against Q3 of 2021. Seasonal and gardening and automotive drove growth in the quarter. Mark’s comparable sales grew 3.6 percent against a strong quarter in 2021, as demand for casualwear and industrial apparel remained robust.
Companywide, retail sales were C$4,734.2 million, up 2.8 percent, compared to the third quarter of 2021 and retail sales, excluding petroleum, were up 0.6 percent; consolidated comparable sales increased 0.7 percent.
Retail Gross margin for the third quarter was up 0.9 percent or 0.6 percent excluding petroleum. Retail IBT (income before taxes) was C$133.0 million, compared to C$226.5 million in the prior year. Normalized income before income taxes was C$148.8 million. Strong revenue growth was offset by the impacts of higher freight and product cost inflation on gross margin and lower other income, mainly in relation to foreign exchange impacts.
Companywide revenue increased 8.1 percent to C$4,228.8 million. Revenue, excluding petroleum, increased 6.0 percent over the same period last year, with the retail and financial services segments both contributing to growth; on a year-to-date basis.
Consolidated IBT was C$298.6 million, down 19.3 percent compared to the third quarter of 2021. On a normalized basis, IBT was C$314.5 million, down 19.1 percent.
“In the third quarter, we effectively engaged our loyalty customers, resulting in increased spending per Triangle Member, with total loyalty sales outpacing non-member sales—a trend we expect to continue,” said Greg Hicks, president and CEO, Canadian Tire Corp. “We remain committed to the strategic growth investments we laid out as part of our Better Connected strategy, and in the near term, we will face changing customer demand and a dynamic economic environment with the confidence that our multi-category assortment is well-positioned to meet our customer needs.”
“Throughout its long history, Canadian Tire Corporation has consistently demonstrated the underlying strength and resilience of its business and its ability to deliver steady growth and returns to its shareholders,” said Hicks.
Photo courtesy Canadian Tire Company
