Canadian Tire’s (CTC) profit declined in the second quarter, pulled down by lacklustre results at
its financial services division.
The Toronto headquartered company said its Q2 net income declined 31.5% year-over-year to
$177.6 million. The drop was partly blamed on a $36.5 million charge Canadian Tire took when
its Helly Hansen apparel brand exited Russia.
Apart from that one-time charge, Canadian Tire said it earned $3.11 per share, down 16% from
a year ago and missing analyst estimates for $3.60 a share in profits.
Revenue in the period increased 12% to $4.40 billion, which was above the $4.21 billion
forecast by analysts.
Canadian Tire primarily blamed the decline in profitability on credit losses at its financial
services division as credit card activity rose in the quarter.
Canadian Tire's retail brands posted mixed results during Q2. Same-store sales at Mark’s rose
21%, and SportChek's sales grew 4.1%. Canadian Tire branded stores increased their sales by
3.9%.
But profits at Canadian Tire’s retail operations were hurt by administrative expenses that rose
10% to $1 billion in the quarter from a year ago.
So far this year, Canadian Tire’s stock has declined 11% to trade at $163.75 per share.
