SportChek’s comparable sales jumped 15.9 percent in the fourth quarter, elevated by a 78 percent surge in the hockey category and the resumption of organized team sports play, officials at Canadian Tire, its parent, said on an analyst call.

The 15.9 percent same-store gain compares against a 3.0 percent decline a year ago.

Gregory Craig, EVP and CFO, said on the call, “At SportChek, comp sales increased an impressive 16 percent, driven by strong consumer demand, improved assortment depth in key categories, and a fully operational store network compared to a year ago. Hockey was up an impressive 78 percent and categories such as athletic footwear, athletic clothing, and casual clothing all experienced double-digit growth.”

Craig also noted that margins at SportChek increased due to lower promotional and clearance activity as a result of “cleaner, healthier inventory positions.”

The SportChek segment includes SportChek, Sports Experts, National Sports, Intersport, and Atmosphere. 

The SportChek segment’s retail sales, which includes both corporate and franchise stores, improved 5.8 percent despite one fewer week of operations and the closure of the National Sports chain. In February 2021, Canadian Tire said it was closing all 18 of the National Sports location across southern Ontario due to overlap with its other chains.

Net sales in the SportChek segment, which excludes franchised sales, were C$625.8 against Canadian$604.8 million a year ago, representing a gain of 3.5 percent.

In the full year, comparable-store sales at the SportsChek segment jumped 17.7  percent against a decline of 9.3 percent a year ago. Sales reached C$2,036.5 million against C$1,814.8 million a year ago, a gain of 12.2 percent.

At Helly Hansen, which Canadian Tire acquired in 2018, external revenue in the quarter reached C$250.4 million, up 27.6 percent.

Craig said, “Helly Hansen also had a strong quarter, delivering Q4 revenue growth of 28 percent with growth across all categories. The strongest contributor in the quarter was a sports wholesale division, up 28 percent and representing over 62 percent of Helly’s total business. Geographically, the U.S. saw the strongest uptick in demand, followed by Europe and Scandinavia, and we were very pleased with 29 percent growth in Canada.”

In the full year, Helly Hansen’s sales reached C$644.9 million against $541.9 million, representing a gain of 19.0 percent.

Companywide, Q421 marked the second consecutive year of strong comparable sales growth, with consolidated comparable sales, excluding petroleum, up 11.3 percent, driven by strong performances across all banners.

At its flagship chain, Canadian Tire Retail (CTR), comp sales were up 10 percent in the quarter and up 23 percent on a two-year stack basis. Automotive, seasonal and play categories delivered the top gains. Craig said, “With the return to sports, another category which saw exceptional growth was hockey. At both CTR and Pro Hockey Life, our hockey business increased 50 percent and 90 percent respectively.”

Mark’s, its workwear chain, saw comp growth in the quarter of 15 percent.

Companywide, sales improved to C$5,137.6 million from C$4,874.5 million a year ago. Net earnings reached C$535.7 million, or C$8.34, against C$521.8 million, or C$7.97, a year ago. Normalized diluted EPS in the quarter was C$8.42, a slight increase of C$0.02 per share or 0.2 percent.

The record fourth-quarter results capped off a strong 2021, with comparable sales up 8 percent, revenue excluding petroleum up 9 percent, and e-commerce sales ahead 30 percent reaching $2 billion for the year. Full-year EPS jumped to a record level of nearly $19, an increase of almost 50 percent compared to 2020.

Greg Hicks, president and CEO, said Canadian Tire’s growth across banners benefited in the fourth quarter as well as throughout last year from its commitment to inventory investments, including seasonal categories such Christmas trees and decorations, as well as sporting goods and toys.

Another benefit was that 40 percent of its sales across banners were driven by the company’s own brands. Hicks said, “Across the North American retail industry, scarcity of inventory and pricing has led to a tremendous amount of brand switching by customers and private labels have benefited from this trend. Unlike many other retailers, we were well-positioned to take advantage of this trend because we’ve put considerable effort and energy into developing or acquiring own brands that provide both quality and value, such as Canvas, NOMA, Sherwood, and WindRiver to meet our customers’ needs across our banners.”

He also cited the company’s omnichannel capabilities that supported click and collect and pickup lockers that helped drive e-commerce sales to C$0.5 billion in the fourth quarter, a penetration rate nearly double pre-pandemic levels.

Supply-chain capabilities also helped Canadian Tire’s banners remain well-stocked over the holiday season.

“Given the ongoing and significant supply chain challenges, we are continuing to build lead times into our supply chain processes as we assume that from sourcing to arrival at our distribution centers, orders will take longer than in previous years,” said Hicks. “We also ordered earlier for offshore sourcing and continue to ensure we have incremental shipping capacity by chartering our own vessels if and when required. Between our team’s incredible focus on execution, our rock-solid supply chain capabilities, and the strength and relevance of our multi-category assortment and our bolstered omnichannel capabilities, we were well-positioned to win in 2021 and the results speak for themselves.”

Looking ahead, Hicks said that quarter-to-date, Canadian Tire’s banners continue to see healthy demand signals from the customer in both its retail business, which continues to be up against strong comps, and at its bank operation. Added Hicks, ‘In terms of the ongoing supply chain challenges, we continue to stay one step ahead. We ordered early for spring and summer, and in many cases, these products are arriving earlier than last year. Our year-end inventory increased by $168 million compared to the previous year, primarily due to an increase in us in-transit inventory at CTR, and this will ensure we continue to be in a position to meet demand.”