(Toronto) The Canadian tire posted year-over-year profits and sales higher than the fourth quarter on Thursday.
February 18, 2021 at 5:38 pm
Retailer big boss Greg Hicks told investors that the results were “not uncommon” and that full year performance continued to be strong despite the operational challenges caused by the epidemic.
For all brands, consolidated sales from stores that have been open for at least a year increased 9.5% in the fourth quarter, while online sales increased 142%, according to the president and CEO.
Canadian Tire owns the Canadian Tire, L’Quipur, Sports Experts, Atmosphere, and SportCheck brands.
Canadian tire stores, sales grew 12.8% for at least a year, and seasonal holiday sales increased 41% for the quarter, while online sales increased 179%.
“Although the first two quarters of the year were significantly affected by the epidemic, the team achieved exceptional results,” said Hicks, adding that the year ended with “financial and operational results.” Out of the ordinary. ”
Canadian Tire has announced the closure of 18 stores under the National Sports banner in southern Ontario to reduce repetition and achieve capabilities in the company’s sporting goods offering.
The company has announced that it will relocate affected employees to other stores in its brand family.
Hicks said the decision to shut down National Sports is part of his strategy to increase his capacity and focus on assets he deems necessary.
“It sure was a small business for us, but the decision to close was focused,” Hicks told investors. “There has always been a very high level of redundancy between this brand, the Sport Check (and the Canadian tire),” he explained.
Sport Check doesn’t exist in Quebec, where the company’s main sports channel is being replaced by sports experts.
In addition to the density of physical stores, counterfeits have also joined the e-commerce functions of various brands, Hicks said.
“It’s a company that has had enough capital for many years to meet its management needs and it’s not a critical asset for us,” he said.
National Sports was launched as National Gym Clothing in 1968, according to its website. Shops are expected to close in late June.
Growing profits and revenues
The Canadian tire was trading at $ 488.8 million, or $ 7.97 per share, for the quarter ended Jan. 2. By comparison, Canadian tires rose $ 334.1 million, or $ 42 5.42 per share, in the fourth quarter of last year.
Revenue increased from $ 4.32 billion a year ago to $ 4.87 billion.
Adjusted, the Canadian tire share increased by 8.40 percent compared to US $ 5.53 in the prior-year quarter.
According to estimates by the financial data company Refinitive, analysts expect an average return of 69,669 per share on sales of 4.83 billion shares.
Irene Nottel, analyst at RBC Dominion Securities, said in a customer announcement that Canadian Tire’s strong fourth quarter results “highlight its unique positions for (the company) Canadian customers.”
For the full year, Canadian Tire posted sales of $ 14.87 billion to shareholders of $ 751.8 million, or 31.12.31 percent net earnings per share. By comparison, in fiscal 2019, retailers with sales of $ 14.53 billion could make $ 778.4 million, or $ 12.58 per share.