Canadian Tire Reports 14% Revenue Decline In Q2 As Retail Stores Closed

Canadian Tire Corp Ltd. (TSX:CTC.A) reported a worse-than-expected second quarter loss as the COVID-19 pandemic led to prolonged store closures across the company’s retail segment, including at Mark’s, SportChek and Helly Hensen.

Excluding one-time items, Canadian Tire reported a loss of 25 Canadian cents per share, while analysts had expected a loss of 10 Canadian cents, according to data from Refinitiv. Revenue at the company fell 14.2% to $3.16 billion in the second quarter, more than estimates of a $2.95 billion revenue decline.

The automotive, home and sporting goods retailer closed all 203 of its stores in Ontario, Canada’s most populous province, and focused heavily on its online business during the year’s second quarter as consumers stayed at home following government-imposed restrictions.

Canadian Tire’s e-commerce business was a lone bright spot for the 98-year-old retailer during the second quarter, as Internet-based transactions rose 400% and helped to offset some losses at the retail segment, which posted an overall decline of 15.2%.

Lower transaction fee revenue brought on by a decline in Canadian Tire branded credit card sales hurt the company’s financial services segment, whose income was down 50% between April and June.