Canadian Tire Corporation’s SportChek segment, which includes the SportChek, Sports Experts, Atmosphere, Pro Hockey Life, Sports Rousseau, and Hockey Experts retail brands, saw comparable sales in the fourth quarter decline 6.4 percent on top of a 1.7 percent comp decline in the 2022 fourth quarter. 

Including sales from both corporate and franchise stores, overall retail sales declined 6.8 percent for the quarter, cycling a 1.6 percent decline in the year-ago period, reportedly driven by continued softening of consumer demand in more discretionary categories such as Outerwear, Skiing/Snowboards and Winter Clothing, and the impact of unseasonable weather.

Net sales fell 13.4 percent to C$552.2 million in the period. Store count declined to 371 doors versus 375 at the end of the quarter in the prior year. Sales per square foot were down 4.2 percent to C$317/sf in Q4 from C$331/sf in Q4 2022.

At Marks, the work wear chain, comparable sales were down 7.2 percent for Q4, cycling a 4.3 percent increase in Q4 2022. Including sales from both corporate and franchise stores, overall retail sales declined 7.6 percent for the quarter, cycling a 4.4 percent decline in the year-ago period. The company said sales were impacted by unseasonable weather, driven by declines in Industrial Businesses, Casual Footwear and Ladies’ Casualwear, partially offset by growth in Men’s Casualwear.

Net sales declined 7.6 percent to C$561.7 million in the quarter. Store count was flat at 380 doors year-over-year. Sales per square foot were down 2.2 percent to C$408/sf in Q4 from C$417/sf in Q4 2022.

Helly Hansen sales, which covers the international wholesale and retail businesses that operate under the Helly Hansen and Musto names and trademarks, were down 9.2 percent year-over-year in Q4 to C$274.0 million, compared to C$301.8 million in the prior-year Q4 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 December 30, 2023, Helly Hansen had no borrowings outstanding on its facility.

Full Year Results
SportChek segment comparable sales were down 3.2 percent for the full year 2023, comping against a 1.8 percent increase in 2022. Including sales from both corporate and franchise stores, overall retail sales declined 3.5 percent for the year, cycling flat comps in full-year 2022, said to be impacted by softening consumer demand and unseasonable weather, led by declines in Outerwear, Outdoor Footwear, and Skiing/Snowboards, partially offset by growth in Team Sports. Net sales declined 7.0 percent to C$1.95 billion in 2023.

At Marks, comparable sales were down 1.9 percent for full-year 2023, cycling a strong 9.6 percent increase in full-year 2022. Including sales from both corporate and franchise stores, overall retail sales declined 2.2 percent for the quarter, compared against a strong 9.8 percent increase in the year-ago period, driven by declines in Industrial Businesses and Casual Footwear due to unseasonable weather, partially offset by growth in Men’s Casualwear and Ladies’ Casualwear, with both experiencing the highest sales volumes to date. Net sales dipped 1.9 percent to C$1.53 billion for the full year.

Helly Hansen’s full-year sales increased 7.1 percent to C$837.2 million, compared to C$781.2 million in the prior year.

Foreign revenue earned by Helly Hansen amounted to C$770.6 million for the year ended December 30, 2023 compared to C$710.7 million for the year ended December 31, 2022.

The company reported Consolidated Owned Brands penetration for the year at 37.6 percent for the total CTC retail segment, said to be “broadly unchanged” against 2022 due to declines in Owned Brands penetration at SportChek and Mark’s driven by lower contributions from seasonal categories.

Image courtesy Helly Hansen