- Retail revenue increased 7.8% in Q2 and 6.7% year to date,
excluding Petroleum
- Consolidated comparable sales up 2.2% in the second quarter,
3.8% year to date:
-
- Canadian Tire up 1.9%, 3.8% year-to-date
- Mark's up 2.6%, 3.9% year-to-date
- SportChek up 3.7%, 3.6% year-to-date
- Financial Services gross average credit card receivables (GAAR)
growth up 8.3%, revenue up 7.5%
- Financial Services earnings was $95.5
million, up 12.5%, normalized
- Diluted earnings per share (EPS) was $2.87, an increase of 20.5%, normalized diluted
EPS was $2.97 up 13.8%
- As announced separately today, Canadian Tire Corporation has
entered into an agreement to purchase Party City's Canadian
business for $174.4 million
(including ~$40 million in
inventory). Details can be found at:
https://www.newswire.ca/news-releases/canadian-tire-corporation-to-acquire-party-city-s-canadian-business-858924226.html
TORONTO, Aug. 8, 2019 /CNW/ - Canadian Tire Corporation,
Limited (TSX:CTC, TSX:CTC.A) today released second quarter results
for the period ended June 29,
2019.
"Our top-line results this quarter and our continued momentum
year-to-date position us well as we enter the second half of 2019.
Our exclusive brands and products are clearly resonating with our
customers, and through our Triangle Rewards loyalty and credit card
programs they are engaging with us more often and shopping across
our channels and banners, signaling the effectiveness of our
growing Triangle marketplace," said Stephen
Wetmore, President and CEO, Canadian Tire Corporation. "We
are executing well against our ambitious growth agenda. Our latest
additions of Party City's Canadian business, Paderno U.S., and
several iconic bicycle brands, including Raleigh, Diamondback and Redline are perfect
examples."
"Over the past year, our teams have made excellent progress on
our One Company, One Customer strategy by investing in new business
capabilities across CTC, including the launch of our Triangle
Rewards loyalty and credit card programs, deliver-to-home at CTR,
enhanced data analytics, improved digital experiences, and the
addition of Helly Hansen to our consumer brands portfolio. While we
will continue to make such investments to drive top-line growth, we
are committed to a greater focus on bottom-line performance. High
quality investments and improved operational efficiencies will help
us achieve our financial aspirations as we seek to become the #1
retail brand in Canada by 2022,"
added Wetmore.
CONSOLIDATED OVERVIEW
- Consolidated retail sales increased $53.6 million or 1.3% in the second quarter.
Excluding Petroleum, consolidated retail sales were up 2.3% over
the same period last year.
- Consolidated revenue increased $205.8
million, or 5.9%. Excluding Petroleum, consolidated revenue
increased $232.8 million, or 7.9% in
the quarter.
- Diluted EPS was $2.87, an
increase of 20.5%, normalized diluted EPS was $2.97 up 13.8%
RETAIL OVERVIEW
- The following financial results reflect Q2 2019 performance
compared to Q2 2018.
- Retail segment revenue increased 5.7%. Excluding Petroleum,
retail segment revenue increased 7.8%.
- Canadian Tire saw retail sales increase 2.1% and comparable
sales were up 1.9%.
- SportChek's retail sales increased 3.0% and comparable sales
increased 3.7%.
- Mark's retail sales grew 2.7% and comparable sales increased
2.6%.
- Helly Hansen revenue in the quarter was $98.6 million.
- Income before income taxes decreased $10.8 million, normalized income before income
taxes decreased $11.8 million.
CT REIT OVERVIEW
- As disclosed in the Q2 2019 CT
REIT earnings release on July 31,
2019, CT REIT announced new investments totalling
$29 million.
FINANCIAL SERVICES OVERVIEW
- In Q2 2019, GAAR was up 8.3% over the prior year.
- Income before income taxes increased 33.7% in the second
quarter to $95.5 million, or 12.5%,
normalized.
CAPITAL EXPENDITURES
- Operating capital expenditures were $116.1 million in the second quarter, up from
$100.8 million in the second quarter
of 2018.
- Total capital expenditures increased $17.0 million in Q2 2019, to $126.5 million.
QUARTERLY DIVIDEND
- The Company has declared dividends payable to holders of Class
A Non-Voting Shares and Common Shares at a rate of $1.0375 per share payable on December 1, 2019 to shareholders of record as of
October 31, 2019. The dividend is
considered an "eligible dividend" for tax purposes.
SHARE REPURCHASE
- On November 8, 2018, the Company
announced its intention to repurchase a further $300 to $400
million of its Class A Non-Voting Shares, in excess of the
amount required for anti-dilutive purposes, by the end of fiscal
2019. As at June 29, 2019,
$311.8 million of such shares had
been repurchased.
To view a PDF version of Canadian Tire Corporation's full
quarterly earnings report please see:
https://mma.prnewswire.com/media/958096/CANADIAN_TIRE_CORPORATION__LIMITED_Canadian_Tire_Corporation_Rep.pdf
FORWARD-LOOKING STATEMENTS
This press release contains
forward-looking information that reflects management's current
expectations related to matters such as future financial
performance and operating results of the Company. Forward-looking
statements are 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.
Certain statements other than statements of historical facts
included in this press release may constitute forward-looking
information, including but not limited to, statements concerning
the Company's intention to repurchase Class A Non-Voting Shares in
excess of the amount required for anti-dilutive purposes by the end
of 2019 under the heading "Share Repurchase".
By its very nature, forward-looking information requires us to
make assumptions and is subject to inherent risks and
uncertainties, which give rise to the possibility that the
Company's assumptions, estimates, analyses, beliefs and opinions
may not be correct and that the Company's expectations and plans
will not be achieved. Although the Company 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 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 Company's actual results to differ from
current expectations, refer to section 2.8 (Risk Factors) of our
Annual Information Form for fiscal 2018 and to sections 7.2.4
(Retail Segment Business Risks), 7.3.2 (CT REIT segment business
risks), 7.4.3 (Financial Services Segment Business Risks) and 12.0
(Risks and Risk Management) and all subsections thereunder of
our Management's Discussion and Analysis for the year ended
December 29, 2018, as well as the
Company's other public filings, available at www.sedar.com and at
https://investors.canadiantire.ca.
The forward-looking statements and information contained herein
are based on certain factors and assumptions as of the date hereof
and do not take into account the effect that transactions or
non-recurring or other special items announced or occurring after
the statements are made have on the Company's business. The Company
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 August 8, 2019. 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.
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, National Sports, Intersport and Atmosphere, which offer
the best active wear brands. The nearly 1,700 retail and gasoline
outlets are supported and strengthened by our Financial Services
division and the tens of thousands of people employed across
Canada and around the world by the
Company and its local dealers, franchisees and petroleum retailers.
In addition, Canadian Tire Corporation 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,
jane.shaw@cantire.com
Investors: Lisa Greatrix,
lisa.greatrix@cantire.com
SOURCE CANADIAN TIRE CORPORATION, LIMITED