- Diluted Earnings Per Share (EPS) was $2.47; normalized diluted EPS grew $2.70 compared to the first quarter of 2020
- Retail segment normalized income before income taxes increased
by over $200 million
- Consolidated comparable sales grew a record 19.3% with all
retail banners up between 18% and 22%
- eCommerce sales across all retail banners up 257%, to
$450 million
TORONTO, May 13, 2021 /CNW/ - Canadian Tire
Corporation, Limited (TSX: CTC) (TSX: CTC.A) today released its
first quarter results for the period ended April 3, 2021.
"I am pleased with the sustained momentum of all of our
businesses and with our unprecedented results in the first quarter,
given significant store network restrictions. Our unique,
multi-category assortment across all banners has been integral in
meeting the demand for products in backyard living, outdoor
activities, home projects and industrial workwear. The continued
growth in our digital capabilities was a key enabler of customers
shopping us their way," said Greg
Hicks, President and CEO, Canadian Tire Corporation.
"Triangle Rewards also saw gains in the quarter with the addition
of over 400,000 new members, and active members' average spend
increasing 15%."
"Thank you to our Distribution Centre and Contact Centre teams,
along with our store staff, Associate Dealers, and corporate
employees, who continue to support each other, our customers and
our communities," continued Hicks.
FIRST QUARTER HIGHLIGHTS
- Outstanding omni-channel performance drove CTC's impressive
comparable sales growth of 19.3% in the quarter
-
- Comparable sales at CTR grew 19.2%, driven by double digit
growth in over 60% of product categories
- Mark's delivered exceptional comparable sales growth of 22%
with continued strength in national brands and strong performance
in industrial categories
- SportChek's strong comparable sales grew by 18.7%, due to
increased demand in categories relating to outdoor activities and
home fitness equipment
- Owned Brands grew $210 million or
over 29% across all banners in the quarter with penetration rate
reaching 35%, driven by impressive performance from Canvas,
Mastercraft, and Helly Hansen workwear
- eCommerce sales across all banners contributed $450 million in the quarter and approached
$2 billion over the last twelve
months
-
- eCommerce sales surged 257% across all retail banners, with CTR
up almost 400%
- Digital visits grew 60% across all banners
- Triangle Rewards loyalty program continued to attract new
customers and drive engagement in the quarter
-
- Triangle members accounted for 56% of retail sales, and
active members' average spend grew 15%
- 30% of Triangle members shopped at more than one retail
banner
- Over 400,000 new members joined the Triangle program
- Significant increase in EPS performance in the quarter was
driven primarily by unprecedented retail segment earnings
-
- Normalized retail income before income taxes grew by
$203.3 million, reflecting:
-
- Retail revenue (excluding Petroleum) growth of 26.8%, fuelled
by continued strong Dealer demand, with CTR revenue growth of
34.8%
- Higher operating leverage with normalized SG&A expenses
(excluding Petroleum) as a percentage of revenue improving by 788
bps
- Financial Services income before income taxes grew by
$56.2 million, or 80%, in the
quarter, reflecting:
-
- Strong portfolio risk metrics and customer activity
- A year over year improvement in gross margin due mainly to a
reduction of $21.1 million in the
allowance for loans receivable
- Lower outstanding receivables, consistent with industry trends,
resulting in a decline in revenue of 13.1% in the quarter
CONSOLIDATED OVERVIEW
- Consolidated retail sales increased $360.7 million to $3.1
billion in the first quarter, or 13.1% over the same period
in 2020. Excluding Petroleum, consolidated retail sales were up
17.8% over the same period last year
- Consolidated revenue increased $474.6
million to $3,322.9 million,
or 16.7% in the first quarter. Excluding Petroleum, consolidated
revenue increased 21.2% over the same period last year
- Diluted EPS was $2.47 in the
quarter, an increase of $2.69 per
share, compared a loss of ($0.22) in
the prior year. Normalized diluted EPS in the quarter was
$2.57, an increase of $2.70 per share
- Refer to the Q1 2021 MD&A section 3.1.1 for information on
normalizing items, and for additional details on events that have
impacted the Company in the quarter
RETAIL SEGMENT OVERVIEW
- Retail segment revenue increased $519.6
million to $3,022.8 million,
or 20.8%, compared to prior year. Excluding Petroleum, Retail
segment revenue increased 26.8% over the same period in 2020
- CTR retail sales increased 20.1% in the first quarter and
comparable sales were up 19.2% over the same period
- SportChek retail sales increased 10.0% in the first quarter and
comparable sales were up 18.7% over the same period
- Mark's retail sales increased 13.7% in the first quarter and
comparable sales were up 22.0% over the same period
- Helly Hansen external revenue was up $14.8 million or 12.2% compared to the same
period in 2020
- Income before income taxes was $102.5
million, compared to a loss of $99.6
million in prior year. Normalized income before income taxes
was $111.2 million, an increase of
$203.3 million versus prior year
- Refer to the Q1 2021 MD&A section 3.1.1 for information on
normalizing items, and for additional details on events that have
impacted the Company in the quarter
FINANCIAL SERVICES OVERVIEW
- The Financial Services business has continued to perform well
through the pandemic as demonstrated by a number of key metrics
including sales, customer payments and delinquency rates
- Gross margin improved by $62.4
million, or 42.9%, over the prior year. The increase was
driven by year over year improvement in net impairment, including a
$21.1 million reduction to the
allowance for loans receivable, partially offset by an expected
shortfall in revenue resulting from the decline in outstanding
receivables, consistent with industry trends
- Income before income taxes was $126.4
million, an increase of $56.2
million, or 80.1%, compared to prior year
- Refer to the Q1 2021 MD&A section 3.1.1 for additional
details on events that have impacted the Company
CT REIT OVERVIEW
- CT REIT delivered 7.5% growth in Adjusted Funds From Operations
(AFFO) per unit in the first quarter
- CT REIT announced six new investments, which will require an
estimated total investment of $40.2
million to complete, adding approximately 162,000 square
feet of incremental gross leasable area to the portfolio upon
completion
- For further information, refer to the Q1 2021 CT REIT earnings release issued May 10, 2021
CAPITAL ALLOCATION
CAPITAL EXPENDITURES
- Operating capital expenditures were $73.3 million in the quarter, relatively flat to
$69.1 million in the first quarter of
2020
QUARTERLY DIVIDEND
- The Company declared dividends payable to holders of Class A
Non-Voting Shares and Common Shares at a rate of $1.175 per share payable on September 1, 2021 to shareholders of record as of
July 31, 2021. The dividend is
considered an "eligible dividend" for tax purposes.
NORMAL COURSE ISSUER BID
- On February 19, 2021, the Toronto
Stock Exchange accepted the Company's notice of intention to make a
normal course issuer bid (the "2021-22 NCIB") to purchase up to 5.4
million Class A Non-Voting Shares (the "Shares") between
March 2, 2021 and March 1, 2022
- The Company intends to purchase Shares under the 2021-22 NCIB
to offset the dilutive effect of the issuance of Shares pursuant to
its dividend reinvestment and stock option plans, consistent with
the Company's policy. The Company retains the flexibility to
purchase additional Shares beyond its anti-dilutive requirements
but does not intend to do so at this time.
To view a PDF version of Canadian Tire Corporation's full
quarterly earnings report, please see:
https://mma.prnewswire.com/media/1509405/CANADIAN_TIRE_CORPORATION__LIMITED___INVESTOR_RELATIONS_Canadian.pdf
FORWARD-LOOKING STATEMENTS
Certain statements made in this press release may constitute
forward-looking information under applicable securities laws. These
statements are being provided for the purposes of providing
information about management's current expectations and plans and
allowing investors and others to get a better understanding of our
anticipated financial position, results of operations and operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes. Although CTC believes that the
forward-looking information in this press release is based on
information, assumptions and beliefs which are current, reasonable
and complete, this information is necessarily subject to a number
of factors, risks and uncertainties, including as a result of
COVID-19, that could cause actual results to differ materially from
management's expectations and plans as set forth in such
forward-looking information. For more information on the
risks, uncertainties and assumptions that could cause the CTC's
actual results to differ from current expectations, refer to
section 10.0 (Key Risks and Risk Management) of our Management's
Discussion and Analysis for the year ended January 2, 2021 as well as CTC's other public
filings, available at www.sedar.com and at
https://investors.canadiantire.ca. CTC does not undertake to update
any forward-looking information, whether written or oral, that may
be made from time to time by it or on its behalf, to reflect new
information, future events or otherwise, except as is required by
applicable securities laws.
CONFERENCE CALL
Canadian Tire will conduct a conference call to discuss
information included in this news release and related matters at
8:00 a.m. ET on May 13, 2021. The conference call will be
available simultaneously and in its entirety to all interested
investors and the news media through a webcast at
https://investors.canadiantire.ca and will be available
through replay at this website for 12 months.
ABOUT CANADIAN TIRE CORPORATION
Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) or
"CTC", is a family of businesses that includes a Retail segment, a
Financial Services division and CT REIT. Our retail business is led
by Canadian Tire, which was founded in 1922 and provides Canadians
with products for life in Canada
across its Living, Playing, Fixing, Automotive and Seasonal &
Gardening divisions. Party City, PartSource and Gas+ are key parts
of the Canadian Tire network. The Retail segment also includes
Mark's, a leading source for casual and industrial wear; Pro Hockey
Life, a hockey specialty store catering to elite players; and
SportChek, Hockey Experts, Sports Experts, Intersport and
Atmosphere, which offer the best active wear brands. The more than
1,740 retail and gasoline outlets are supported and strengthened by
CTC's Financial Services division and the tens of thousands of
people employed across Canada and
around the world by CTC and its local dealers, franchisees and
petroleum retailers. In addition, CTC owns and operates Helly
Hansen, a leading global brand in sportswear and workwear based in
Oslo, Norway. For more
information, visit Corp.CanadianTire.ca.
FOR MORE INFORMATION
Media: Jane
Shaw, (416) 480-8581, jane.shaw@cantire.com
Investors: Karen Keyes, (647)
518-4461, karen.keyes@cantire.com
SOURCE CANADIAN TIRE CORPORATION, LIMITED - INVESTOR
RELATIONS