Canadian Tire Corporation’s (CTC) SportChek segment, which includes the SportChek, Sports Experts, Atmosphere, Pro Hockey Life, Sports Rousseau, and Hockey Experts retail brands, saw comparable sales decline 6.5 percent in the 2024 first quarter after comping up 3.7 percent in the 2023 first quarter.
Including sales from both corporate and franchise stores, overall retail sales declined 7.5 percent for the quarter, cycling a 3.9 percent growth in the year-ago period, reportedly driven by “soft consumer demand” in Skiing/Snowboards, Outerwear, and Athletic Clothing, partially offset by “strong performance” in Team Sports and Footwear.
Net sales declined 7.9 percent to C$387.7 million in the period, compared to C$420.8 million in the prior-year Q1 period. Store count declined to 369 doors versus 372 at the end of the quarter in the prior year. Sales per square foot was down 5.7 percent to C$313/sf in Q1 from C$332/sf in Q1 2023.
At the company’s Marks, segment the work wear chain saw comparable sales slip 1.2 percent for Q1, cycling against a 4.8 percent increase in Q1 2023. Including sales from both corporate and franchise stores, overall retail sales declined 1.5 percent for the quarter, cycling against a 5.0 percent increase in the year-ago period. The company said that sales declines in Industrial Businesses and Ladies’ Casualwear, were partially offset by growth in Casual Footwear.
Net sales declined 2.0 percent to C$288.1 million in the quarter, compared to C$294.0 million in the year-ago Q1 period. Store count was 380 doors in Q1, up one location year-over-year. Sales per square foot were down 3.5 percent to C$414/sf in Q1 from C$429/sf in Q1 2023.
Helly Hansen sales, the CTC segment that covers the international wholesale and retail businesses that operate under the Helly Hansen and Musto names and trademarks, were down 7.8 percent year-over-year in Q1 to C$192.2 million, compared to C$208.4 million in the prior-year Q4 period. In constant-currency terms, reconciling the Canadian dollar against the Norwegian Krone, Helly Hansen sales were C$198.2 million in the first quarter.
Foreign (non-Canadian) revenue earned by Helly Hansen for the first quarter amounted to C$178.9 million, compared to C$193.8 million in the year-ago Q1 period.
Helly Hansen has a 175 million Norwegian Krone (NOK) secured overdraft facility ($22.8 million of Canadian dollar equivalent) provided by a Norwegian bank, which automatically renewed in January and expires in January 2025. As of March 30, 2024, Helly Hansen had no borrowings outstanding on its facility.
Image courtesy SportChek/Canadian Tire Corp.
