SportChek’s comparable sales in the third quarter were down 7.4 percent as strong growth in team sports was offset by weakness in more discretionary categories, such as athletic footwear and clothing, according to its parent, Canadian Tire Corp. Ltd. Helly Hansen revenue was up 28.2 percent compared to the same period in 2022.

Canadian Tire reported consolidated comparable sales were down 1.6 percent, as the consumer spend softening experienced in Q2 persisted into Q3, particularly in Ontario and British Columbia (BC). At its flagship banner, Canadian Tire Retail, comparable sales were down 0.6 percent. Essential categories at the chain were up 4 percent, led by Automotive.

At Marks, the work wear chain, comparable sales were up 0.2 percent, against strong growth in Q3 2022. Ladies’ casualwear and casual footwear gains offset declines in industrial and men’s casualwear.

Consolidated revenue was C$4.25 billion, up 0.5 percent compared to C$4.23 billion in the corresponding period last year. Revenue (excluding Petroleum) was C$3.65 billion, an increase of 1.1 percent compared to the prior-year quarter.

Consolidated IBT (income before taxes) was C$69.3 million, down from C$298.6 million a year ago. Normalized IBT was C$266.3 million, compared to C$314.4 million in the prior year. Diluted EPS was a loss of C$1.19 per share, compared to EPS of C$3.14 in the prior-year quarter. Normalized diluted EPS was C$2.96, compared to C$3.34 in Q3 last year.

“Against softening consumer demand, our Q3 results show the continued resilience, relevance, and underlying strength of our business as we leveraged loyalty and prioritized essential categories within our multi-category assortment,” said Greg Hicks, president and CEO of Canadian Tire Corporation. “We remain focused on driving value for our customers as we head into the important fourth quarter.”

“In a more challenging economic environment, we are accelerating efficiency initiatives, prioritizing investments within our Better Connected strategy, and actively managing our resource allocation,” added Hicks.

Photo courtesy Helly Hansen