Canadian Tire reports third-quarter profit, raises dividend
Canadian Tire Corp. Ltd. raised its dividend as it reported a profit in its latest quarter compared with a loss a year ago when it took a large one-time charge.
The retailer says it will now pay a quarterly dividend of $1.775 per share, up from $1.75 per share.
The increased payment to shareholders came as Canadian Tire reported net income attributable to shareholders of $200.6 million, or $3.59 per diluted share. The result compared with a loss attributable to shareholders of $66.4 million or $1.19 per diluted share in the same quarter last year when it recorded a charge related to its deal to buy back the 20% stake in Canadian Tire Financial Services that was owned by Scotiabank.
On a normalized basis, Canadian Tire says it earned $3.59 per diluted share in its latest quarter compared with a normalized profit of $2.96 per diluted share a year earlier.
Revenue for the quarter totalled $4.19 billion, down from $4.25 billion in the same quarter last year.
Consolidated comparable sales were down 1.5% compared with a year earlier. Comparable sales at its Canadian Tire stores fell 2.2%, while SportChek comparable sales rose 2.9%. Mark's comparable sales dropped 2.3%.
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“We delivered strong retail profitability for the third consecutive quarter and sales trends improved," said Greg Hicks, president and CEO, Canadian Tire Corporation. "With customer spending still constrained, Canadians are seeking value and finding it through Triangle Rewards, where more loyalty members earned and redeemed with us at higher levels this quarter. We continue to control costs and manage margins carefully, in order to balance lingering consumer and economic headwinds. At the same time, the investments we have made over the last two years position us well, with better omnichannel experiences, higher customer satisfaction scores, and a positive reaction to new products as they hit our shelves."
According to Canadian Tire’s financial statement for the quarter, the company saw increased loyalty engagement and saw active registered loyalty members up 4%, with members taking advantage of 1:1 offers, taking advantage of Triangle promotions, and scanning their loyalty cards more. In-store Net Promoter Score (NPS) was also up across the company's banners, with store investments and a focus on strong in-stock availability of key brands helping drive improvements in positive customer sentiment.
With additional files from Canadian Tire Corp. Ltd.
