Canadian Tire Corporation reported retail sales at its SportChek segment were up 5.8 percent in the fourth quarter while comparable sales grew 15.9 percent.

The segment includes SportChek, Hockey Experts, Pro Hockey Life, Sports Experts, National Sports, Intersport, and Atmosphere. Retail sales growth includes sales from both corporate and franchise stores.

Canadian Tire said SportChek’s 5.8 percent gain came despite one fewer week of operations and the closure of National Sports. Canadian Tire said in a filing, “SportChek continued to benefit from the resumption of organized team sports. Top-performing categories were Hockey, Athletic Footwear and Clothing.”

Net sales in the SportChek segment, excluding franchised sales, were C$625.8 against C$604.8 million a year ago, representing a gain of 3.5 percent.

Helly Hansen, which Canadian Tire acquired in 2018, generated external revenue in the quarter of C$250.4 million, up 27.6 percent.

Overall, Retail segment revenue increased C$247.8 million, or 5.4 percent, to C$4,830.0 million. Retail segment revenue, excluding Petroleum1, increased 2.7 percent.

In its other two segments, Canadian Tire Retail saw retail sales increase 3.4 percent and comparable sales were up 9.8 percent. Mark’s retail sales increased 9.6 percent and comparable sales were up 15.0 percent.

Income before income taxes in the Retail segment increased C$60.2 million to C$638.1 million, or 10.4 percent. Normalized income before income taxes increased C$31.4 million or 5.1 percent.

Consolidated retail sales, including franchised operations, increased C$343.8 million in the fourth quarter, or 6.5 percent over the same period in 2020. Excluding Petroleum, consolidated retail sales were up 4.5 percent over the same period last year.

Companywide, sales improved to C$5,137.6 million from C$4,874.5 million a year ago. Net earnings reached C$535.7 million, or C$8.34, against C$521.8 million, or C$7.97, a year ago. Normalized diluted EPS in the quarter was C$8.42, a slight increase of C$0.02 per share or 0.2 percent

Fourth Quarter Highlights

  • Q4 2021 marked the second consecutive year of outstanding comparable sales growth, with consolidated comparable sales, excluding Petroleum, were up 11.3 percent, driven by strong performances across all banners;
  • EPS performance reflected strong retail segment performance; and
  • More than 770,000 members joined its Triangle program in the fourth quarter, up 23 percent.

Full-Year Highlights

  • 2021 marked a second consecutive year of growth in sales (including growth in eCommerce) and revenue, which drove high growth in earnings;
  • Full-year diluted EPS reached a record high, up 49.3 percent to C$18.38; normalized diluted EPS was C$18.91, up 45.5 percent; and
  • The company’s Triangle program attracted 2.4 million new members, ending the year with 11 million members, including 2.2 million active credit cardholders.

“Our exceptional results in the fourth quarter capped off an outstanding year for CTC in which we delivered record EPS and remarkable sales growth for the second consecutive year. Our fourth-quarter comparable sales increase of 11 percent in 2021 and reflects the continued strength and relevance of our unique multi-category assortment and the success of our strengthened omnichannel capabilities. We welcomed 2.4 million new Triangle Rewards members in 2021, many of whom joined through SportChek and Mark’s and subsequently shopped at Canadian Tire for the first time. Our growth in membership, including more than 380,000 new Triangle credit card holders acquired by Canadian Tire Bank, demonstrates the value of our assets and our ability to meet our customers’ needs; however, they choose to shop us,” said Greg Hicks, president and CEO, Canadian Tire Corporation.

“In another challenging year, our teams across CTC, Associate Dealers, and frontline employees continued to step up for our customers and build on the trust they have in our brand. I am proud of their commitment to make life in Canada better for our customers,” added Hicks.