Canadian Tire Q1 profit down from year ago due to restructuring costs
Canadian Tire Corp. Ltd. (CTC) reported its first-quarter profit fell compared with a year ago as it was hit by restructuring costs.
The retailer says its net income attributable to shareholders from continuing operations amounted to $27.3 million or 49 cents per diluted share, down from $59.9 million or $1.08 per diluted share a year ago.
The company says its net income attributable to shareholders from discontinued operations totalled $9.9 million or 18 cents per diluted share in its latest quarter compared with $16.9 million or 30 cents per diluted share in the same quarter last year.
On a normalized basis, Canadian Tire says it earned $2.00 per diluted share from continuing operations, up from $1.08 per diluted share a year earlier.
Revenue for the quarter totalled $3.46 billion, up from $3.33 billion in the same period last year.
"We had a strong quarter of sales and earnings growth, as we controlled the controllables, elevated customer loyalty, and delivered the great value and seasonal products customers were seeking. It's clear Canadians are choosing CTC," said Greg Hicks, president and CEO, Canadian Tire Corporation in a press release accompanying the announcement.
"Since March, we also announced our new transformative growth strategy – True North – and have hit the ground running with investments in new store concepts, dramatic expansion of Triangle Rewards including new RBC and WestJet loyalty partnerships, and a new company structure that maximizes our world-class customer insights and our ability to go to market in more efficient and modern ways."
Canadian Tire launched True North as part of a four-year transformative growth strategy, designed to drive core retail growth through four strategic cornerstones: disciplined capital investments to build exceptional digital and store experiences; an expanded Triangle Rewards loyalty system; creating more personalized and data-driven customer relationships; and a more agile, tech-driven and efficient operating company.
READ: RBC and Canadian Tire Corporation announce strategic loyalty partnership
Canadian Tire launched True North as part of a four-year transformative growth strategy, designed to drive core retail growth through four strategic cornerstones: disciplined capital investments to build exceptional digital and store experiences; an expanded Triangle Rewards loyalty system; creating more personalized and data-driven customer relationships; and a more agile, tech-driven and efficient operating company.
“The strategy is designed to increase shareholder value above the Company's historic levels,” Canadian Tire said. “True North includes more than $2 billion in capital investment over the four years starting in 2025 across a series of value creating initiatives in each focus area, which will be overseen by a newly established transformation management office.”
As part of True North's focus on expanding the Triangle Rewards system, Canadian Tire announced a new partnership with WestJet Rewards, in addition to the addition of RBC as a strategic Triangle partner.
Linked members who pay with their Triangle Mastercard or WestJet RBC Mastercard will benefit from accelerated earn rates when shopping within participating CTC and WestJet businesses. WestJet Rewards members will have the added ability to convert WestJet points into Canadian Tire Money, providing increased flexibility and value when shopping across CTC's extensive retail network.
"This is an exciting step as we extend the reach and value of Triangle Rewards, putting more Canadian Tire Money in the hands of millions of Canadians," said Darryl Jenkins, executive vice-president and chief development officer, Canadian Tire Corporation. "Travel is a meaningful category for our members and WestJet is the ideal partner to help us reward them better, whether they're flying across the country or shopping for everyday needs."
"The partnership between WestJet and CTC represents a powerful collaboration between two beloved Canadian brands," said John Weatherill, group executive vice-president and chief commercial officer, WestJet. "We are thrilled to bring our WestJet flights and vacation packages into the Triangle Rewards program and excited that our WestJet Rewards members will soon be able to earn WestJet points on their everyday purchases at CTC banners; helping them get closer to their next trip."
Canadian Tire will also continue as part of its True North campaign invest in new store formats which are expected to improve sales, margin and customer experience.
Planned investments in 2025 include more than 30 Canadian Tire store projects and 18 Mark's store projects, including seven new Bigger, Better, Bolder stores, capitalizing on Mark's record of accretive returns and emerging market share opportunities in the casual apparel sector.
- With additional files from Canadian Tire Corp. Ltd.
