Canadian Tire Corporation, Ltd. reported SportChek’s comparable sales were up 0.1 percent in the second quarter ended July 1. Team sports and lifestyle footwear grew, while athletic clothing and outerwear were down.
Companywide, Canadian Tire’s retail sales were CN$5,214.9 million, down 2.8 percent, compared to the second quarter of 2022, with petroleum sales driving the decrease. Retail sales (excluding petroleum) were down 0.1 percent. The consolidated comparable sales were up 0.1 percent, following strong growth of 5.0 percent in Q222.
Among its other businesses, the flagship Canadian Tire Retail (CTR) retail sales were down 0.1 percent and comparable sales were up 0.1 percent over the same period last year. Mark’s retail sales increased 0.1 percent over the same period last year, and comparable sales were up 0.4 percent. Helly Hansen’s revenue was down 2.9 percent compared to the same period in 2022.
Consolidated revenue was CN$4,255.8 million, down 3.4 percent compared to CN$4,404.0 million in the same period last year. Revenue (excluding petroleum) was CN$3,706.8 million, a decrease of 0.5 percent compared to the prior year.
Consolidated income before income taxes was CN$173.9 million, down 27.0 percent from $238.1 million a year ago due in part to direct costs of CN$74.6 million relating to previously-disclosed March 2023 distribution center fire, recording to its retail segment, and CN$33.3 million relating to GST/HST-related charge resulting from the recently-enacted federal budget legislation, recorded in the financial services segment.
Normalized income before income taxes was CN$281.8 million, down 0.9 percent from CN$284.3 million in the prior year.
Diluted EPS was CN$1.76 compared to CN$2.43 in the prior year. Normalized diluted EPS was CN$3.08, compared to CN$3.11 in the prior year.
“As inflation persisted and rate hikes continued, consumer demand for discretionary goods softened, particularly in the latter half of the quarter, and Canadians shifted to more essentials within our multi-category assortment,” said Greg Hicks, president and CEO of Canadian Tire Corporation. “Loyalty sales continue to outperform non-member spend, driving an increase in loyalty penetration. During this time of macroeconomic uncertainty, Triangle Rewards remains our most important driver in delivering value for our customers.”
“Our ongoing commitment to our Better Connected strategy further positions us to deliver value over the long term,” added Hicks. “The investments we are making to integrate our customers’ digital and in-store experiences continue to deliver strong results.”
Photo courtesy Sport Chek
