Canadian Tire Corp. reported SportChek delivered a third consecutive quarter of comparable sales growth, up 6.3 percent, driven by strong sales across corporate and franchise stores. Skiing, snowboards, hockey, and outerwear were the top-performing categories in the quarter.

Same-store sales were down 6.5 percent in the year-ago quarter. Sales in the quarter for the segment reached Canadian $412.3 million against C$387.7 million a year ago.

The SportChek segment includes SportChek, Hockey Experts, Sports Experts, Atmosphere, and Pro Hockey Life. The segment operated 368 stores against 369 in 2024.

Canadian Tire Corp. reported that consolidated comparable sales growth in the first quarter was 4.7 percent. Retail revenue was up 4.0 percent. Normalized diluted EPS was C$2.18, up C80 cents. Diluted EPS was C67 cents, down C71 cents, including the results for the Helly Hansen business, which the company is selling to Kontoor Brands.

“We had a strong quarter of sales and earnings growth, as we controlled the controllables, elevated customer loyalty, and delivered the great value and seasonal products customers were seeking. It’s clear Canadians are choosing CTC,” said Greg Hicks, president and CEO, Canadian Tire Corporation. “Since March, we also announced our new transformative growth strategy, True North, and have hit the ground running with investments in new store concepts, dramatic expansion of Triangle Rewards, including new RBC and WestJet loyalty partnerships, and a new company structure that maximizes our world-class customer insights and our ability to go to market in more efficient and modern ways.”

First-Quarter Results

  • Consolidated comparable sales were up 4.7 percent, and consolidated retail sales were up 5.1 percent. Increased trips drove sales growth across all banners, with strength in Ontario, Quebec and Eastern Canada. Among its other banners, Canadian Tire Retail (CTR) comparable sales grew 4.7 percent, with growth across all CTR divisions except Fixing, led by strong growth in seasonal weather-related categories. Auto maintenance, outdoor tools, and auto parts were the top-performing lines of business in the quarter. Mark’s comparable sales were up 2.2 percent, driven by industrial wear. New store openings continued to significantly contribute to retail sales growth and in-store Net Promoter Score (NPS) advances.
  • Backed by the strength of the Canadian Tire brand and Triangle member engagement, loyalty sales growth outperformed retail sales. Loyalty penetration was up 132 bps, reaching 54.5 percent of retail sales on a direct scan, rolling 12-month basis. Consolidated income before income taxes (IBT) was down C$51.3 million to C$51.6 million, and diluted EPS was C67 cents, including the results for Helly Hansen business (now included in discontinued operations) and expenses related to the implementation of the company’s True North strategy.
  • Normalized for the True North expenses, IBT, on a continuing operations basis, was up C$62.8 million to C$165.7 million, which resulted in Normalized Diluted EPS (continuing operations) of C$2.00, up C92 cents from last year. Improved IBT was mainly due to an increase in retail segment profitability. Normalized Retail IBT, on a continuing operations basis, was C$50.9 million, up C$69.2 million, due to a higher gross margin and lower interest expense. Financial Services IBT was C$97.0 million, up C$1.3 million, as higher revenue offset expected increases in net impairment losses and higher funding costs.

Strategic Highlights
During the first quarter, CTC launched True North, its four-year transformative growth strategy, designed to drive core retail growth through four strategic pillars: disciplined capital investments to build digital and store experiences and expanded Triangle Rewards Loyalty System to create more personalized and data-driven customer relationships and a more agile, tech-driven and efficient operating company. The company designed the strategy to increase shareholder value above historic levels. True North includes over C$2 billion in capital investment over the four years starting in 2025 across a series of value-creating initiatives in each focus area, which a newly established transformation management office will oversee.

The transformation is underway, with progress on several fronts.

As part of True North’s focus on expanding the Triangle Rewards system, the company announced a new partnership with WestJet Rewards, in addition to its March 27 announcement of the addition of RBC as a strategic Triangle partner. Both partnerships are expected to launch in 2026 and will be key for building the strategy, creating more value for Triangle members, increasing member acquisition and engagement, and contributing to retail sales growth by expanding the reach and issuance of Canadian Tire Money beyond CTC’s retail

True North’s store enhancement program will invest in new store formats to improve sales, margin, and customer experience. Planned investments in 2025 include over 30 Canadian Tire store projects and 18 Mark’s store projects, including seven new Bigger, Better, Bolder stores, capitalizing on Mark’s record of accretive returns and emerging market share opportunities in the casual apparel sector. In addition, SportChek is optimizing its portfolio and opened the second of its two new concept “Destination Sport” stores, in Toronto and Ontario, in April 2025.

Since announcing the True North strategy, the company has begun restructuring into a more agile operating company under a new senior leadership team.

CTC is progressing towards completing its previously announced divestiture of the Helly Hansen business and expects that the transaction will close before the end of the second quarter, unlocking capital for shareholders and strategic capital investments.

Image courtesy SportChek