Canadian Tire Corporation, Ltd, which last week announced a deal to acquire Forzani Group, reported that first quarter consolidated retail sales increased 3.7 percent to CN$1.96 billion, with total consolidated revenues increasing 4.6 percent to CN$1.98 billion.
By retail segment, Canadian Tire Retail (CTR) store sales dipped 0.6% in the first quarter, with comparable-store sales decreasing 1.4 percent for the period, versus a 1.7 percent comp store gain in the year-ago period. Management pointed to slower traffic patterns and a lack of spring weather for the declines. The CTR banner is the primary driver of sporting goods and outdoor sales for the retailer. The company finished the quarter with 487 CTR stores, a seven door net gain year-over-year.
The Marks banner, which is focused on workwear and work footwear, posted 6.2 percent growth in both comp stores and total retail stores for the period. The retailer finished the quarter with 382 Marks stores, flat to the year-ago number.
Retail segment EBITDA was CN$112.8 million in the first quarter, down 2.1 percent from segment EBITDA of CN$115.3 million in the prior-year period.
Income before taxes for the Retail segment increased 16.1 percent to CN$31.6 million in Q1, compared to CN$27.3 million in Q1 last year.
Consolidated first quarter net income increased 13.3 percent to CN$58.4 million, or CN 71 cents per diluted share.
“Our revenue performance in Automotive, Apparel and Financial Services met our expectations for the quarter and we are pleased with our overall consolidated earnings and growth,” said Stephen Wetmore, president and CEO, Canadian Tire Corp. “We saw strong Retail sales in January and February, however, unseasonable weather in March, and continuing into April, has reduced our customer traffic and sales in seasonal product categories.
“We are a strong business, executing well on all our key programs, so it’s unfortunate to see how our seasonal business impacted our results this quarter,” Wetmore said.
