Canadian Tire revenue jumps in busy holiday season as e-commerce sales continue to grow
The revenues of Canadian Tire Corp. ltd. rose 5.4% in the fourth quarter, reflecting a strong holiday shopping season, higher fuel sales at its gas stations and demand for hockey equipment as people returned to organized sports.
The Toronto-based retailer reported revenue of $5.1 billion in the 13 weeks ended Jan. 1, compared with $4.9 billion in a 14-week period a year earlier.
Like many retailers, Canadian Tire has been spending more on shipping to prepare for the busy holiday season amid global supply chain challenges. The company prioritized shipments of high-demand products and chartered its own boats to ensure delivery.
The company’s stores also saw fewer restrictions on in-person shopping compared to 2020. Although this led to a decline in online shopping, e-commerce sales were still up significantly from levels pre-pandemic, hitting nearly $500 million in the quarter.
At flagship Canadian Tire stores, same-store sales — an important metric that tracks sales growth unaffected by permanent store openings or closings — rose 9.8% in the fourth quarter from a year earlier.
Sport Chek comparable sales rose 15.9% as stores saw demand for hockey equipment, athletic shoes and apparel. And Mark’s same-store sales were up 15%, helped by a return to in-store shopping and inventory management.
Canadian Tire also set up its Triangle loyalty program to give the company better access to customer data. The program grew 23% during the quarter and now has over 770,000 members.
The company said fourth-quarter net income rose to $535.7 million, or $8.40 per share, from $521.8 million, or $8.04 per share, a year earlier.
For the full fiscal year ended January 1, 2022, revenue increased 9.6% to $16.3 billion. Net income for the year was $1.3 billion or $18.56 per share, compared to $862.6 million or $12.35 per share a year earlier.
Your time is valuable. Receive the Top Business Headlines newsletter in your inbox morning or evening. register today.