Sales at FGL Sports, formerly known as Forzani, reached $341.8 million in the first quarter ended March 31, up 5.6 percent from a year earlier on strong early sales of bicycles and other spring gear. Same-store sales at the FGL Sports, which was acquired by Canadian Tire Corp. Ltd. in August 2011, grew 7.0 percent versus the comparable period in 2011.
The growth helped power a increased 26.5 percent in retail revenue at Canadian Tire Corp., where sales reached $2.2 billion in the first quarter compared to the same period in 2011.
 
Excluding FGL Sports, retail revenue increased 6.7 percent driven by growth across all banners, which include the Canadian Tire Petroleum chain of service stations and Mark's.
Favourable weather in March drove strong sales in backyard living, cycling and gardening while promotional activity throughout the quarter supported growth in kitchen and household cleaning. The Automotive category continued to perform well this quarter with sales growth in auto maintenance, car care, and tires.
 
Canadian Tire Petroleum retail sales increased 5.2 percent compared to the prior year, driven by a rise in fuel prices and additional sites related to the 400 series highway initiative.
 
Mark's delivered strong growth this quarter as retail sales increased 7.1 percent and same store sales were up 5.8 percent over the prior year. The majority of the increase came from sales growth in the industrial apparel and footwear categories, particularly in the Prairie provinces and Quebec.
“We had a very good first quarter driven by strong retail sales growth from all banners, including our most recent addition, FGL Sports, and strong performance by Financial Services,” said Stephen Wetmore , President and CEO, Canadian Tire Corporation. He said FGL Sports was well positioned for the early onset of spring and saw sales growth in hard goods, apparel and footwear. FGL Sports operated 506 stores at the end of the quarter.
 
Canadian Tire Corporation

Consolidated financial results

(C$ in millions except per share amounts)

Q1 2012

Q1 2011

Change

Retail sales

$

2,421.2

$

1,974.0

22.7%

Revenue

2,439.5

1,976.2

23.4%

Gross margin

749.0

612.8

22.2%

Other income/(expense)

3.9

2.3

71.7%

Operating expenses

625.8

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