Canadian Tire Corp. reported FGL Sports’ retail sales were down 1.4 percent in the first quarter and same-store sales were down 2.7 percent in the first quarter of 2017. Same-store sales at Sport Chek were down 4.3 percent.
Companywide, consolidated retail sales increased Canadian C$95 million or 3.8 percent in the first quarter. Excluding Petroleum, consolidated retail sales were up 1.4 percent over the same period last year. Consolidated revenue increased C$194.1 million, or 7.6 percent, which includes a C$62.4 million increase in Petroleum revenue resulting from higher per liter gas prices. Excluding Petroleum, consolidated revenue increased C$131.7 million, or 6 percent, in the quarter.
Among its other segments, Canadian Tire Retail saw retail sales increase 2 percent, and same-store sales were up 0.5 percent compared to the prior year. Mark’s retail sales grew 5.7 percent and same -tore sales increased 5.4 percent compared to the same period last year.
Net earnings rose 26.1 percent to C$107.9 million, or C$1.24 a share. Gross margins improved to 35.3 percent from 35.7 percent a year ago. SG&A expenses increased 2.8 percent to C$799.1 million from C$777.4 million.
“We have delivered strong earnings performance in both our Financial Services and Retail segment, and in particular we saw strong revenue growth at CTR. The organization is focused on the right initiatives for 2017 and we have good momentum leading into our primary selling seasons,” said Stephen Wetmore, president and CEO, Canadian Tire Corporation.
Photo courtesy Sport Chek
