Canadian Tire Corporation Reports Third Quarter Results, Announces 13th Consecutive Year of Annual Dividend Increase and Renewal of Share Repurchase Program
THIRD QUARTER HIGHLIGHTS
- Consolidated retail sales1 were up 2.8%; consolidated comparable sales (excluding Petroleum)1 were up 0.7%, taking year to date consolidated comparable sales (excluding Petroleum) to 3.8%
- Canadian Tire Retail (CTR) comparable sales1 were up 0.7% against Q3 of 2021; Seasonal and Gardening and Automotive drove growth in the quarter
- Mark’s comparable sales1 grew 3.6% against a strong quarter in 2021, as demand for casualwear and industrial apparel remained robust
- SportChek cycled an exceptional back-to-school quarter in the prior year, with a 1.0% decline in comparable sales1; growth in categories such as cycling and casual clothing partially offset the decline in athletic clothing and footwear
- Triangle Loyalty member sales outpaced retail sales, driven by an increase in active members and spend per member
- The Company continued to prioritize organic growth investments and returns to shareholders, as set out in its Better Connected strategy
- Investments continue to be aimed at delivering a better omnichannel customer experience, with the first two Remarkable Retail stores opened in Ottawa and in the Niagara region (Welland) since the end of the third quarter, and pick-up lockers now rolled out to close to 80% of CTR stores
- Strengthening the Company’s supply chain fulfillment infrastructure remains a focus. In addition to existing investments in new distribution centres in Calgary and the Greater Toronto Area, the Company has signed a lease on a new 385,000 square foot distribution centre in Richmond, BC, to support longer-term sales growth in Western Canada.
- The Company increased its annual dividend for the 13th consecutive year to $6.90 per share commencing in March 2023, a cumulative quarterly dividend increase of 33% since last year
- With the completion of its $400 million share repurchase program, the Company has announced its intention to repurchase an additional $500 million to $700 million Class A Non-Voting shares by the end of 2023
- Diluted EPS was $3.14; normalized diluted EPS was $3.34, down 20.5%, reflecting lower Retail income before income taxes (IBT), partially offset by a strong performance in Financial Services
- Retail segment IBT was down $93.5 million in the quarter to $133.0 million; strong Retail segment revenue was at a lower Retail gross margin rate, mainly due to higher freight and product cost inflation. A further $14 million of the IBT variance was attributable to foreign exchange impacts at Helly Hansen.
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