Retailer Canadian Tire (CTC.A) has reported that its net income, or profit, fell 32% in its latest quarter to $99.4 million from $145.2 million a year earlier.
The company’s revenue in this year’s second quarter declined 3% to $4.26 billion from $4.40 billion in the same period of 2022.
Canadian Tire blamed the poor results on weakening discretionary spending on the part of consumers.
The Bank of Canada raised its trendsetting interest rate by another quarter of a percentage point in July, taking it to 5%, the highest level since 2001.
Following its poor Q2 showing, Canadian Tire withdrew its forward guidance that had called for 4% average annual sales growth by 2025. The company did not provide any new guidance.
Canadian Tire also noted that a fire at its distribution centre in Brampton, Ontario earlier this year cost it nearly $75 million in losses.
The stock of Canadian Tire has risen 1% over the past 12 months to trade at $166.01 per share. The company’s share price is unchanged from five years ago.
