TORONTO — Automotive and outdoor goods giant Canadian Tire Corp. beat analyst expectations in the second quarter amid strong sales in sporting goods and apparel, with earnings surging nine per cent.
Revenue in the period ended July 1 rose two per cent to $3.4 billion from $3.3 billion in the same period a year ago.
Net income attributable to shareholders rose to $195.2 million, or $2.81 per share, up from $179.4 million ($2.46) in the same period last year. That was above mean analyst expectations of $2.52 per share in earnings, according to Thomson Reuters.
“I am very pleased with our topline results, given the challenges posed by the slow start to the spring and summer season,” said Stephen Wetmore, chief executive. “We experienced strong sales growth in June, controlled our expenses during the quarter and had strong margin performance, which is the momentum we like to see as we go into the second half of the year.”
Same-store sales, a measure of retail performance that strips out year over year square footage changes, rose 1.8 percent.
At Canadian Tire’s retail stores, same-store sales were up 1.4 per cent; they rose 2.6 per cent at the FGL Sports division, and were up 4 per cent at Mark’s.