Canadian Tire Corp. reported same-store sales at SportChek grew 4.2 percent in the third quarter, marking the segment’s fifth consecutive quarter of comparable sales growth. The gains were boosted by back-to-school and back-to-hockey sales.
Areas of growth included athletic clothing and footwear, as well as leisure footwear and hard goods such as golf and hockey equipment.
SportChek retail sales increased 3.2 percent over the same period last year. The SportChek segment includes SportChek, Hockey Experts, Sports Experts, Atmosphere, and Pro Hockey Life.
Canadian Tire Corp.’s consolidated comparable sales were up 1.8 percent, led by the continued strong performance at SportChek and strong performance in Ontario and Quebec at Canadian Tire Retail (CTR).
CTR comparable sales were up 1.2 percent, as stronger growth in Ontario and Quebec was partially offset by weaker growth in Alberta. Four of CTR’s five divisions grew, and automotive was up for the 21st consecutive quarter. Discretionary sales growth outpaced essential sales for the first time since 2021.
Mark’s comparable sales were up 2.5 percent, with strength in workwear and jeans on earlier demand for fall seasonal products. Growth at new-concept Bigger Bolder Better (BBB) stores continued to remain strong.
CTR Dealer restocking of non-seasonal and fall/winter categories, along with strong sales across other banners, drove strong growth in Retail Revenue and retail gross margin. Excluding petroleum, retail revenue increased by 5.9 percent; the retail gross margin rate was 35.8 percent, up 57 basis points.
Normalized for the expenses related to its True North transformation program, diluted EPS was up 6.5 percent to Canadian$3.78. Normalized income before taxes (IBT) was broadly stable at C$297.7 million, compared to C$296.7 million in the same quarter last year. Favorable normalized retail IBT offset a decline in financial services income before income taxes (IBT), primarily reflecting previously communicated investments in the business.
Diluted EPS was C$3.13, down C42 cents, or 11.8 percent, mainly due to expenses related to the company’s True North transformation.
“In a continued dynamic consumer environment, we grew retail sales for a third consecutive quarter,” said Greg Hicks, president and CEO, Canadian Tire Corporation. “At the same time, we completed a transformative reorganization, a key building block to better operating efficiency and value creation under our True North strategy. Our confidence is reflected in our continued strategic investments, our dividend increase, and our share repurchase program.
“Our Triangle Rewards program has real momentum and is contributing to loyalty sales growth. We announced a new Tim Hortons partnership in Q3, with new Royal Bank of Canada and WestJet programs on track to launch in 2026. Partnering with leading Canadian programs will accelerate our brand scale, our data insights, and sales.”
