Canadian Tire Corporation releases Q2 2023 results

Canadian Tire Corporation has disclosed its second quarter performance, concluding on July 1.

Consolidated comparable sales increased by 0.1%, trailing the 5.0% growth in Q2 2022, with consumer spending tapering towards the quarter's end, particularly in Ontario. Loyalty sales as a percentage of retail sales recorded an 80 basis points rise, driven by ongoing loyalty sales outperformance over non-loyalty sales. Normalized diluted EPS stood at $3.08, reflecting a 1.0% decrease from the prior year; diluted EPS decreased by $0.67, settling at $1.76.

Normalized consolidated income before income taxes reached $281.8 million, compared to $284.3 million in the previous year. Consolidated IBT amounted to $173.9 million, a drop from $238.1 million in the prior year. Retail sales totaled $5,214.9 million, marking a 2.8% decrease from Q2 2022, primarily attributed to Petroleum influence. Retail sales, excluding Petroleum, and consolidated comparable sales both experienced a marginal decline of 0.1% and a slight increase of 0.1%, respectively, against a strong prior-year baseline.

"As inflation persisted and rate hikes continued, consumer demand for discretionary goods softened, particularly in the latter half of the quarter, and Canadians shifted to more essentials within our multi-category assortment," said Greg Hicks, president and CEO. "Loyalty sales continue to outperform non-member spend, driving an increase in loyalty penetration. During this time of macroeconomic uncertainty, Triangle Rewards remains our most important driver in delivering value for our customers."

"Our ongoing commitment to our Better Connected strategy further positions us to deliver value over the long-term. The investments we are making to integrate our customers' digital and in-store experiences continue to deliver strong results," he said.