Canadian Tire Corporation released their second quarter results for the period ended June 29, 2019.

 

Highlights:

  • Retail revenue increased 7.8% in Q2 and 6.7% year to date, excluding Petroleum
  • Consolidated comparable sales up 2.2% in the second quarter, 3.8% year to date:
  • Canadian Tire up 1.9%, 3.8% year-to-date
  • Mark’s up 2.6%, 3.9% year-to-date
  • SportChek up 3.7%, 3.6% year-to-date
  • Financial Services gross average credit card receivables (GAAR) growth up 8.3%, revenue up 7.5%
  • Financial Services earnings was $95.5 million, up 12.5%, normalized
  • Diluted earnings per share (EPS) was $2.87, an increase of 20.5%, normalized diluted EPS was $2.97 up 13.8%
  • As announced separately today, Canadian Tire Corporation has entered into an agreement to purchase Party City’s Canadian business for $174.4 million (including ~$40 million in inventory)

“Our top-line results this quarter and our continued momentum year-to-date position us well as we enter the second half of 2019,” said Stephen Wetmore, President and CEO, Canadian Tire Corporation. “We are executing well against our ambitious growth agenda. Our latest additions of Party City’s Canadian business, Paderno U.S., and several iconic bicycle brands, including Raleigh, Diamondback and Redline are perfect examples.”

“Over the past year, our teams have made excellent progress on our One Company, One Customer strategy by investing in new business capabilities across CTC, including the launch of our Triangle Rewards loyalty and credit card programs, deliver-to-home at CTR, enhanced data analytics, improved digital experiences, and the addition of Helly Hansen to our consumer brands portfolio. While we will continue to make such investments to drive top-line growth, we are committed to a greater focus on bottom-line performance. High quality investments and improved operational efficiencies will help us achieve our financial aspirations as we seek to become the #1 retail brand in Canada by 2022,” added Wetmore.

Source: Canadian Tire