FGL Sports sales grew 1.7 percent to C$379.4 million and same-store sale 6.4 percent in the first quarter ended March 29, compared to the prior year, its parent company Canadian Tire Corp. reported Thursday morning.
Same store sales at Sport Chek, FGL Sports' core corporate banner, increased 11.9 percent in the first quarter, which also saw the opening of a new state-of-the-art flagship store in West Edmonton Mall. Sales gains were led by higher sales across all apparel categories and strong sales of hard goods as well as the positive customer response to Olympic performance and Team Canada hockey apparel supporting the Sochi Olympic Winter Games.
“We saw the momentum from a very positive 2013 carry into the first two months of the quarter, and we are strongly positioned for the balance of the year,” said Stephen Wetmore, CEO, Canadian Tire Corporation. “Early in the new year, the 2014 Olympic Winter Games presented an opportunity for Canadian Tire, Sport Chek and Sports Experts to increase customer affinity for the retail brands through new marketing initiatives. The results of the campaigns and customer feedback have been tremendous and were reflected in sales of Olympic-related merchandise.”
Canadian Tire Corp. reported revenue at its Retail segment, which includes nearly 1,700 retail and gasoline outlets, increased 3.4 percent, or $76.2 million to $2.3 billion in the quarter due to strong shipments at Canadian Tire and sales growth at FGL Sports, Petroleum and Mark's.
Income before income taxes in the Retail segment was $16.6 million in the quarter, down 28.2 percent over the prior year. This reflects the impact of the operations of CT REIT during the quarter including the payment of rent expense at market rates for properties acquired by CT REIT. The earnings also reflect strong gross margin performance across all retail businesses, which were offset by planned increases in marketing and advertising expenses due to Olympic and sport sponsorship activities and higher stock-based compensation expenses.
Canadian Tire achieved first quarter 2013 retail sales levels despite the late arrival of the spring selling season with same store sales down 0.5 percent compared to the same period last year. Strong sales in January and February were impacted late in the quarter by continued winter weather in March.
Petroleum sales were up 3.3 percent in the quarter largely related to higher gasoline prices and increased non-gasoline sales.
| Key operating performance measures1 | ||||||||
| (year-over-year percentage change, C$ in millions, except where noted) |
Q1 2014 | Q1 2013 | Change | |||||
| FGL Sports | ||||||||
| Retail sales growth3 | 1.7% | 5.7% | ||||||
| Same store sales growth3 | 6.4% | 9.1% | ||||||
| Sales per square foot | $ | 282 | $ | 268 | 4.9% | |||
| Revenue | $ | 379.4 | $ | 367.4 | 3.3% | |||
3 Retail sales and same store sales metrics for the prior year have been restated.
