Canadian Tire Reports Higher Earnings and Third Quarter Sales, Increases Dividend

0
38


Canadian Tire Corp. Ltd. reported an increase in sales in the third quarter on Thursday, when pandemic-inspired cooking, remodeling and living rooms drove shoppers to the company’s eponymous stores.The chain, a staple of the Canadian retail landscape with products ranging from kitchenware and auto parts to tools and outdoor living, recorded a 25.7% increase in sales per report for the same quarter in 2019.

While brick-and-mortar stores have seen an increase in foot traffic and an expansion of curbside pickup services, the retailer has also seen online sales growth of 178%.

“With continued travel restrictions and limited entertainment options in the third trimester, families turned to us to implement their creative summer vacation plans, like backyard trips, camping, and travel. car, ”Canadian Tire President and CEO Greg Hicks said on an investor call.

“It boosted sales in all relevant seasonal categories.”

He said COVID-19 has also encouraged more one-stop shops and a larger “basket size” as shoppers stock up to avoid multiple trips to the store.

“We believe the macro trend when it comes to one-stop shopping is here to stay, at least through the winter and as the pandemic continues,” Hicks said.

Indeed, he said the retailer sees strong momentum as it approaches its busiest selling season, despite cutting back some of its usual holiday promotions to keep traffic levels safe in stores.

“Believe it or not, Christmas sales are already pretty strong,” Hicks said. “And the early snow in the West boosted our outerwear business at Mark’s and SportChek.”

Canadian Tire is a family of companies that includes financial services, real estate and retail – its best-known segment.

The company’s brands include its Canadian Tire stores, sports equipment and clothing retailer SportChek, clothing store Mark’s, and sports and workwear brand Helly Hansen.

SportChek’s sales fell 1.7 percent, which the company attributed in part to restricted hours of operation and lower foot traffic in malls where more than half of its stores are located .

The retailer also saw lower back-to-school sales and a drop in demand for hockey and sports equipment due to the cancellation of many organized sports and events. Sales were also negatively impacted by the decision to move inventory of SportChek bikes to Canadian Tire stores in the second quarter.

Still, SportChek saw strong sales in categories related to outdoor recreation, such as hiking, camping, golf and fitness.

Meanwhile, the company said retail sales at Mark’s stores were up 4.9% from a year ago. Hicks said workwear has become a “highly resilient” retail category during the pandemic.

Helly Hansen, based in Oslo, Norway, reported a 2.5% drop in revenue in the quarter.

Still, Helly Hansen remains focused on the future, Hicks said, noting that the subsidiary has signed partnerships to become the official clothing supplier for members of the Canadian Ski Patrol and the Norwegian National Alpine Ski Team.

“These offers are a testament to Helly’s status as a leading brand in professional ski clothing and its dedication to the development of high performance clothing,” he said.

The retailer increased its dividend by reporting higher earnings and income, saying it would pay a quarterly dividend of $ 1.175 per share, up from $ 1.1375 per share.

The increase in payment to shareholders came as Canadian Tire reported profit attributable to shareholders of $ 296.3 million or $ 4.84 per diluted share, up from $ 197.2 million or 3. $ 20 per diluted share a year ago.

Revenue totaled $ 3.99 billion, compared to $ 3.64 billion.

Hicks called the company’s third quarter performance “a real testament to the relevance of our brand and our unique assortment across multiple categories.”

On a normalized basis, Canadian Tire says it earned $ 4.93 per diluted share in its most recent quarter, up from $ 3.46 per diluted share in the third quarter of 2019.



LEAVE A REPLY

Please enter your comment!
Please enter your name here