Canadian Tire Corporation, Ltd. reported comparable sales at its SportChek segment grew 8 percent in the second quarter ended June 30 and 12.4 percent on a two-year stack basis, with the gains credited to World Cup-related demand. Fanwear, team sports and athletic footwear drove the eighth consecutive quarter of growth at SportChek.

The SportChek segment includes SportChek, Sports Experts, Pro Hockey Life, Hockey Experts, and Atmosphere.

Companywide, consolidated comparable sales increased 0.7 percent in Q2 and 6.3 percent on a two-year stack basis. In its other segments, CTR comparable sales were down 0.8 percent and up 5.5 percent on a two-year stack basis. Automotive sales grew for the 24th consecutive quarter, partly offsetting weather-impacted categories across other divisions. eCommerce sales grew 14 percent, outpacing growth in Retail sales.

Mark’s Comparable sales were up 4.2 percent and 5.2 percent on a two-year stack basis. Mark’s seventh consecutive quarter of growth was led by sales of industrial footwear, workwear and denim.

Consolidated Income before income taxes (IBT) was $280.0 million, up $21.7 million or 8.4 percent. On a normalized basis, consolidated IBT was up 1.6 percent and Retail IBT was up 1.2 percent. The increase in normalized Retail IBT was driven by revenue growth at petroleum, SportChek and Mark’s, along with tighter operating discipline, which resulted in a higher gross margin dollars and SG&A leverage.

Higher normalized net income and a reduced share count contributed to normalized diluted EPS of $3.94, up 10.4 percent. Diluted EPS was $3.65, up 18.9 percent.

Executive Commentary
“In Q2, we demonstrated our operational agility by lowering prices for value-seeking customers, adapting to challenging weather conditions, and ultimately delivering strong financial results,” said Greg Hicks, president and CEO, Canadian Tire Corporation.

“At the same time, we continued to advance our True North strategy, increasing the use of personalized Triangle loyalty offers, growing eCommerce, and delivering strong sales in our new concept Mark’s and SportChek stores.

“The 2026 Men’s World Cup was a highlight of the quarter. Activations in store and online drove soccer fans and new customers to SportChek, and Jumpstart partnered with the Canadian government to announce a multi-year commitment to build 25 inclusive community soccer pitches across Canada by 2029, extending the World Cup legacy in communities nationwide.”

Strategic Highlights
During the first half of 2026, the company continued to prioritize customer engagement through its Triangle Rewards loyalty program and the rollout of store concepts that support a better omnichannel customer experience and drive sales.

    • Loyalty sales were up 3.1 percent, continuing to outpace non-loyalty sales, as members active in the program grew. CTC extended its Triangle Rewards member benefits to include free ship-to-home on CTR eCommerce orders.
    • The use of loyalty offers and promotional events has also increased eCTM issuance at Canadian Tire Bank, supporting Retail sales.
    • The Triangle Rewards program will add a fourth partner this fall with the launch of its Tims Rewards partnership, extending member engagement opportunities and building on the success of partnerships with Petro-Canada, RBC and WestJet.
    • Completed store enhancement projects include 15 refreshed or expanded CTR stores (including expansions in Valleyfield, QC, Winnipeg, MB, Burlington, ON and Penticton, BC); and 15 new or refreshed stores at other banners, including new PartSource stores in Ontario and BC and a Mark’s Bigger Bolder Better (BBB) store in Calgary, AB. The company continues to work with landlords to roll out new Destination Sport stores at SportChek in the second half of 2026, and to bring new concept stores to more Canadians in 2027.

As at the end of Q2, the company had completed approximately 47 percent of its 2025-26 Share Repurchase Intention, under which CTC can repurchase up to $400 million in shares by the end of 2026.

Second Quarter Continuing Operations Segment Overview
Retail Segment Overview

  • Retail sales were $5,391.6 million, up 4.5 percent, compared to the second quarter of 2025. Retail sales, excluding Petroleum1 were up 2.5 percent. Consolidated Comparable sales were up 0.7 percent.
  • CTR Retail sales were up 1.4 percent and comparable sales were down 0.8 percent over the same period last year.
  • SportChek Retail sales increased 7.7 percent over the same period last year, and comparable sales were up 8.0 percent.
  • Mark’s Retail sales increased 5.1 percent over the same period last year, and comparable sales were up 4.2 percent.
  • Retail Revenue was $3,890.1 million, an increase of $79.8 million, or 2.1 percent, compared to the prior year; Retail Revenue excluding Petroleum1 was down 1.1 percent.
  • Retail Gross margin dollars were $1,223.5 million, up 0.7 percent compared to the second quarter of the prior year, and down 0.1 percent excluding Petroleum1; Retail Gross margin rate, excluding Petroleum1, increased 33 bps to 35.1 percent.
  • Retail SG&A was $769.2 million, down 1.3 percent compared to the same period last year. 
  • Retail IBT was $180.3 million in Q2 2026 or $201.1 million on a normalized basis, compared to Retail IBT of $161.1 million in the prior year or $198.8 million on a normalized basis. Gross margin dollars and SG&A leverage offset higher depreciation as well as lower Other income.
  • Refer to the company’s Q2 2026 MD&A sections 4.2.1 and 4.2.2 for information on normalizing items and additional details on events that have impacted the Retail segment in the quarter.

Financial Services Overview

  • Financial Services IBT was $74.7 million compared to $74.1 million in the prior year, as higher Revenue and Gross margin dollars offset infrastructure and True North investments.
  • GAAR was up 4.2 percent relative to the prior year, with continued cardholder engagement driving higher Average account balance1 and an increase in Average number of accounts.
  • Refer to the company’s Q2 2026 MD&A section 4.3.1 and 4.3.2 for additional details on events that have impacted the Financial Services segment in the quarter.

CT REIT Highlights

  • During the quarter, CT REIT completed a $13 million vend-in of a Canadian Tire store and Canadian Tire Gas+ gas bar in St. Catharines, ON, representing approximately 52,400 square feet of incremental gross leasable area.
  • In relation to CTC’s 68.0 percent stake in CT REIT, distributions of $38.9 million were received and included in Other income in the Retail segment earnings in the quarter.
  • For further information, refer to CT REIT’s Q2 2026 earnings release issued on August 10, 2026. 

Second Quarter Continuing Operations Consolidated Overview

  • Revenue was $4,302.9 million, compared to $4,201.9 million in the same period last year.
  • Consolidated IBT was $280.0 million, up $21.7 million compared to the prior year. On a normalized basis, Consolidated IBT was up $4.8 million.
  • Diluted EPS was $3.65 or $3.94 on a normalized basis, compared to $3.07 or $3.57 on a normalized basis in the prior year.
  • Refer to the company’s Q2 2026 MD&A section 4.1.1 for information on normalizing items and additional details on events that have impacted the company in the quarter.

Capital Allocation

Capital Expenditures

  • Total capital expenditures were $174.9 million, compared to $114.1 million in Q2 2025.
  • Operating capital expenditures1 were $112.3 million in the quarter, compared to $103.0 million in Q2 2025.
  • Due to adjusted phasing of strategic initiatives and increased discipline around capital allocation, full-year operating capital expenditures for 2026 are now expected to be in the range of $450 million to $500 million, compared to the previously disclosed range of $500 million to $550 million.

Quarterly Dividend

  • On August 12, 2026, the company’s Board of Directors declared dividends of $1.80 per share payable on December 1, 2026, to shareholders of record as of October 31, 2026. The dividend is considered an “eligible dividend” for tax purposes.

Share Repurchases

  • On November 6, 2025, the company announced its intention to repurchase up to $400 million of its Class A Non-Voting Shares in excess of the amount required for anti-dilutive purposes by the end of 2026 (the 2025-26 Share Repurchase Intention).
  • During Q2 2026, the company purchased a total of 460,001 shares for $85.1 million under its 2025-26 Share Repurchase Intention.

Image courtesy Sportschek