Retail sales at FGL Sports (FGL) – Canada’s largest sporting goods retailer-grew 4.5 percent to C$444.2 million ($447mm) in the fourth quarter ended Dec. 29, 2012, according to parent company Canadian Tire Corp. (CTC).


FGLs same-store sales grew 2.9 percent and would have been up by nearly 4 percent if not for the NHL lockout, which hurt sales of licensed goods. Same-store store sales grew 3.8 percent at its flagship Sport Chek banner during the quarter and 6.8 percent for the full year. Strong performance in hard goods, apparel and footwear was offset by the impact of the NHL lockout and the late arrival of winter weather, particularly in Ontario and Quebec



“The acquisition of FGL Sports has been a remarkable success, said Stephen Wetmore, president and CEO of CTC. Our Sport Chek and Sports Experts “super brands” achieved strong sales growth and we started to implement ambitious growth plans in 2012 that will fuel future growth.”

FGL, which began consolidating several banners as part of a five-year plan launched in 2012, ended the quarter with 495 stores. That included more than 30 doors under its Atmosphere outdoor specialty banner and was 39 fewer stores compared with the end of 2011.
 
In 2013, CTC plans to boost capital spending by up to C$90, or 27 percent, with the bulk of the money going toward adding hundreds of thousands of square feet of retail space at Sport Chek stores and rolling out “retail lab” locations. FGL also expects to close on its acquisition of Pro Hockey Life, which would strengthen CTC’s leadership position in sports and broaden its offering in hockey.


Canadian Tire Retail (CTR) reported consolidated sales increased 1.4 percent in the fourth quarter and increased 1.0 percent to $3.2 billion in 2012. The figures include results from FGL, the Canadian Tire chain of general merchandise stores, revenues from CTRs gas stations and auto service centers as well as sales at the Marks chain, which sells apparel, footwear and work wear. CTRs diluted earnings per share declined 1.8 percent in the fourth quarter compared to the prior year. Excluding costs related to corporate restructuring, tax adjustments, the purchase of FGL Sports and income from a tax settlement, diluted earnings per share increased 2.8 percent in Q4 2012. Despite the late start to winter, executives said all CTC retail banners moved into 2013 with very clean seasonal inventory.



CTR reported sales of hunting, fishing and camping products grew 25.4, 9.4 and 13.4 percent respectively at Canadian Tire stores that offered expanded assortments via so-called outdoor and sports pro shops.


CTR will focus in 2013 on enhancing the customer experience across all of its banners as it prepares for Targets entry into the Canadian market. Plans include deploying 7,000 in-store devices to allow customers and store staff to access a new digital catalog that will launch in the back half of the year, offering in-store pick-up at all Canadian Tire stores, expanding its roll out of outdoor and sports pro shops at Canadian Tire stores, expanding its store-within-a-store concept to new categories and testing its sub-10,000-s.f. express store format to penetrate high-rent urban neighborhoods.