Canadian Tire Corporation, Ltd. reported SportChek’s comparable sales rose 3.3 percent in the first quarter, marking the seventh consecutive quarter of growth.  The quarter saw strong performance from fanwear, athletic footwear and hard goods. The 3.3 percent gain builds on a 6.3 percent increase in the year-ago first quarter.

On an analyst call, Greg Hicks, president and CEO, Canadian Tire Corp., said SportChek’s growth was “supported by continued strong execution on fundamentals and brand partnerships. Fan gear was a highlight, with strong demand from the early lead up to the World Cup as well as the Olympics. While hard goods were impacted by lower sales in skiing and snowboarding, hockey performed well.”

He also said SportChek is investing strongly in inventory to take advantage of the upcoming World Cup. Hicks said, “At Sport Chek, we are well-stocked to meet World Cup demand. Overall, our inventory is in good shape with improved aging and newness in the assortment.”

He concluded his formal comments with a call out to Canada’s soccer team. He said, “I wanna wish Team Canada our best in the upcoming World Cup. We have absolutely caught the fever and are very excited for game days in Toronto and Vancouver. Stay tuned for some pretty special SportChek and Jumpstart soccer activations across the country coming soon.

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

Total sales at the SportChek segment were CN$471.8 million ($344 mm), up 6.3 percent from CN$443.8 million in the year-ago period. Retail sales, which includes sales from both corporate and franchise stores, were up 0.7 percent. The segment had 317 stores in the latest period, down from 331 a year ago.

Companywide, consolidated comparable sales were down 1.0 percent, with growth at SportChek and Mark’s offset by a decline at CTR (Canadian Tire Retail)

  • CTR comparable sales were down 2.3 percent. Fixing categories grew, while Seasonal and Gardening led the decline. Western Canada outperformed, with seasonal weakness impacting Ontario and Quebec. Automotive retail sales were up for the 23rd consecutive quarter.
  • Mark’s comparable sales were up 1.2 percent on higher casualwear sales. New-concept Bigger Bolder Better (BBB) stores remained a key driver.

Retail Revenue growth was strong, up 2.9 percent or 5.0 percent excluding Petroleum, reflecting higher shipments to support the Q2 spring/summer season and replenishment at CTR.

Consolidated Income before income taxes (IBT) was CN$169.1 million, up CN$117.5 million, mainly reflecting prior year restructuring expense, and up CN$3.4 million on a normalized basis. Retail IBT of CN$50.9 million was stable year-on-year on a normalized basis; Retail gross margin dollars increased on higher Retail Revenue, offset by higher IT and variable compensation expenses.

Retail Segment Overview

  • Retail sales were CN$3,375.7 million, down 1.4 percent. Retail sales excluding Petroleum decreased 0.3 percent and consolidated comparable sales were down 1.0 percent.
  • CTR Retail sales decreased 0.9 percent and comparable sales were down 2.3 percent.
  • SportChek Retail sales increased 0.7 percent and comparable sales were up 3.3 percent.
  • Mark’s Retail sales increased 1.9 percent and comparable sales were up 1.2 percent.
  • Retail Revenue was CN$3,149.6 million, an increase of CN$87.8 million, or 2.9 percent. Retail Revenue excluding Petroleum
    increased 5.0 percent to CN$2,689.5 million.
  • Retail Gross margin dollars were CN$1,034.5 million, up 5.8 percent, and CN$971.2 million, up 4.9 percent excluding Petroleum
  • Retail Gross margin rate excluding Petroleum was 36.1 percent.
  • Retail IBT was CN$50.9 million, up CN$114.1 million and stable year-on-year on a normalized
    basis
  • Retail EBITDA was CN$349.7 million, up 4.6 percent on a normalized basis
  • Retail Return on Invested Capital (ROIC) on a rolling twelve-month basis was 10.9 percent at the end of Q1 2026, compared to 10.4 percent at the end of Q1 2025.

Financial Services Overview

  • Gross average accounts receivable (GAAR) increased by 3.1 percent on continued cardholder
    engagement, mainly driven by increased active accounts and Credit card sales growth
  •  Revenue and Gross margin dollars increased 5.3 percent and 5.1 percent, respectively.
  • Financial Services IBT was C$94.2 million, down C$2.8 million or 3.1 percent compared to the prior year, as higher Gross margin was more than offset by previously communicated investments in the business.

CT REIT Highlights

  • During the quarter, CT REIT announced three new investments representing approximately
    129,800 square feet of incremental gross leasable area.
  • In relation to CTC’s 68.0 percent stake in CT REIT, distributions of C$38.4 million were received and included in Other Income in the Retail segment earnings in the quarter.

Consolidated Overview

  • Revenue was C$3,570.9 million, up 3.3 percent or CN$114.2 million.
  • Consolidated IBT was C$169.1 million, up CN$117.5 million and up CN$3.4 million on a normalized
    basis.
  • Diluted EPS was CN$2.02 compared to 67 cents, or CN$2.00 on a normalized basis in Q1 2025.

Capital Expenditures

  • Total capital expenditures were CN$94.0 million, compared to CN$115.9 million in Q1 2025.
  • Operating capital expenditures were CN$86.1 million, compared to CN$110.4 million in Q1 2025.
  • Full-year operating capital expenditures for 2026 are expected to be in the previously
    disclosed range of CN$500 million to CN$550 million.

Quarterly Dividend

  • On May 13, 2026, the company’s Board of Directors declared dividends of CN$1.80 per share
    payable on September 1, 2026, to shareholders of record as of July 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 CN$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 Q1 2026, the company purchased a total of 335,000 shares for CN$60.1 million under
    its 2025-26 Share Repurchase Intention.

Image courtesy SportChek