Higher expenses including foreign exchange resulted in lower earnings
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TORONTO — Canadian Tire Corp. Ltd. reported lower second-quarter profit compared to a year ago.
The retailer reported its net income attributable to shareholders totalled $145.2 million or $2.43 per diluted share for the quarter, down from $223.6 million or $3.64 per diluted share a year earlier.
Canadian Tire says retail sales rose 9.9 per cent and comparable sales, excluding petroleum, gained 5.0 per cent. Retail sales at its SportChek banner grew 0.6 per cent as comparable sales gained 4.1 per cent, and retail sales at its Mark’s banner rose 21.1 per cent as comparable sales rose 20.9 per cent.
On a normalized basis, Canadian Tire says it earned $3.11 per diluted share, down from a normalized profit of $3.72 per diluted share a year earlier.
The company says while the performance of the retail segment of the business remains significantly above pre-pandemic levels on a normalized basis, higher expenses including foreign exchange resulted in earnings coming in lower in the second quarter compared to the prior year.
Canadian Tire also says its financial services revenue grew 15 per cent, driven by growth in receivables and growth in credit card sales, due to increased customer activity and new account acquisitions.
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