Canadian Tire Corporation Delivers Strong Q1 Results

  • Same store sales up in all core retail banners:
    • 1.0% at Canadian Tire Retail
    • 12.3% at Sport Chek
    • 0.8% at Mark's
  • Retail EBITDA increased by 8.8%
  • First quarter diluted earnings per share was $0.90, up 2.6%

TORONTO, May 12, 2016 /CNW/ - Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.A) today released first quarter results for the period ended April 2, 2016.

"Once again, our results demonstrate continued strong execution by all of our retail businesses with solid same store sales and impressive margin and expense management, even in a quarter with unseasonable weather," said Michael Medline, President and CEO, Canadian Tire Corporation.

"We have also taken a meaningful step in driving our innovation agenda forward with the very successful launch of our new digital catalogue – the Canadian Tire WOW Guide – a great example of how we're bridging the gap between the physical and digital worlds," continued Medline.  


  • Consolidated retail sales increased $19.5 million or 0.8% in the first quarter including a 9.0% decline in Petroleum retail sales due to lower gas prices and gas volumes.  Excluding Petroleum, consolidated retail sales were up 3.0% over the same period last year.
  • Excluding Petroleum, consolidated revenue increased $91.9 million, or 4.3% in the quarter, primarily due to higher shipments at Canadian Tire and increased sales at FGL Sports and Mark's partially offset by decreased revenue at Financial Services. Consolidated revenue increased 1.8% over the same period last year.
  • Diluted EPS was $0.90 in the quarter, an increase of $0.02 per share, or 2.6%, over the first quarter of 2015.


  • Retail segment revenue increased 5.2% excluding Petroleum in the quarter.  Retail segment revenue increased 2.1% in Q1 compared to last year.
  • Retail margin rate excluding Petroleum increased 46 basis points primarily driven by productivity initiatives at Canadian Tire.
  • Income before income taxes in the Retail segment was $20.6 million, up $0.9 million, or 4.8% in the first quarter of 2016, over 2015.
  • Canadian Tire Retail saw retail sales increase 2.2% and same store sales up 1.0% in the quarter over Q1 2015.
  • FGL Sports' retail sales were up 7.2% and same store sales were up 7.6% in the first quarter of 2016. Same store sales at Sport Chek were up 12.3%.
  • Mark's retail sales grew 0.2% and same store sales increased 0.8% compared to Q1 2015.


  • As disclosed in the Q1 2016 CT REIT release issued May 10, 2016, CT REIT completed in the quarter the acquisition from CTC of two existing Canadian Tire stores, one Canadian Tire anchored plaza and one intensification project for a total investment of $46.1 million. Subsequent to quarter end, CT REIT completed the previously announced sale and leaseback transaction with Sears Canada Inc., for its distribution centre in Calgary, AB and also completed the previously announced acquisition of land for the development of a Canadian Tire store and four vend-ins from CTC. 


  • Income before income taxes decreased 7.1% in the first quarter to $93.6 million.
  • In Q1 2016, GAAR was down 0.6% over the prior year driven by a reduction in active accounts as well as Management's conservative approach to new account acquisition taken in 2014 and early 2015, partially offset by increased average account balances.
  • Financial Services continues to expect that results in the second quarter of 2016 will be negatively impacted by Management's decision in prior periods to adopt a more conservative approach to new account acquisition and due to increased investment in its in-store financing programs in the second quarter to reinvigorate GAAR growth and drive sales at Canadian Tire Retail. 


  • Operating capital expenditures were $86.5 million in the first quarter, down slightly from $89.7 in the prior year.  
  • As previously disclosed in Q3 2015, operating capital expenditures for 2016 are expected to be in the range of $625 million and $650 million reflecting increased investments in the retail network expansion and continued investments in digital and technology initiatives.
  • Distribution capacity capital expenditures for 2016 are expected to be in the range of $150 million to $175 million.


  • The Company has declared dividends payable to holders of Class A Non-Voting Shares and Common Shares at a rate of $0.575 per share payable on September 1, 2016 to shareholders of record as of July 31, 2016. The dividend is considered an "eligible dividend" for tax purposes.


  • On November 12, 2015, the Company announced its intention to repurchase a further $550.0 million of its Class A Non-Voting Shares, in excess of the amount required for anti-dilutive purposes, by the end of 2016. As at April 2, 2016 the Company had repurchased $220.0 million, leaving $330.0 million to be repurchased in fiscal 2016.


  • On February 18, 2016, the Toronto Stock Exchange accepted the Company's notice of intention to make a normal course issuer bid to purchase up to 6.0 million Class A Non-Voting Shares between March 2, 2016 and March 1, 2017 (the "2016 NCIB").

To view a PDF version of Canadian Tire Corporation's full quarterly earnings report please see:


This document 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.

All statements other than statements of historical facts included in this document may constitute forward-looking information, including but not limited to, statements concerning the Company's expectations with respect to the results of its Financial Services business under the heading "Financial Services Overview", the Company's expectations with respect to its operating capital expenditures for 2016 under the heading "Capital Expenditures", 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 2016 under the heading "Share Repurchase", and other statements concerning management's expectations relating to possible or assumed future prospects and results, our strategic goals and priorities, our actions and the results of those actions and the economic and business outlook for us. Forward-looking information is based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such information is provided.

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 document 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 2.10 (Risk Factors) of our Annual Information Form for fiscal 2015 and to sections 7.2.4 (Retail segment business risks), 7.3.3 (CT REIT segment business risks), 7.4.3 (Financial Services segment business risks) and 12.0 (Enterprise Risk Management) and all subsections thereunder of our 2015 Management's Discussion and Analysis, as well as the Company's other public filings, available at and at

Statements that include forward-looking information 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. For example, they do not include the effect of any dispositions, acquisitions, asset write-downs or other charges announced or occurring after such statements are made.

The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. 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.

Canadian Tire will conduct a conference call to discuss information included in this news release and related matters at 2:00 p.m. ET on May 12, 2016. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at, 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 categories. 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, and FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life and Atmosphere), which offers the best active wear brands. The 1,700 retail and gasoline outlets are supported and strengthened by our Financial Services division and the tens of thousands of people employed across the Company. For more information, visit


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For further information: Media: Jane Shaw, 416-480-8581,; Investors: Lisa Greatrix, 416-480-8725,


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