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Canadian Tire sees cautious consumer spending drag down profits
A Canadian Tire store is shown in Levis, Que., Monday, May 9, 2011. (Jacques Boissinot/THE CANADIAN PRESS)
TORONTO -
Canadian Tire Corp. Ltd. is reporting a drop in earnings and revenue as inflation tamps down consumer demand for discretionary goods.
In the three months ended July 1, the Toronto-based retail giant says net income attributable to shareholders fell 32 per cent to $99.4 million from $145.2 million in the same period a year earlier.
The 101-year-old company says revenue in its second quarter fell three per cent to $4.26 billion from $4.40 billion the previous year.
Canadian Tire says normalized diluted earnings decreased to $3.08 per share from $3.11 per share, roughly in line with analyst expectations, according to financial markets data firm Refinitiv.
CEO Greg Hicks says inflation and rate hikes hit consumer demand for non-essential item, especially in the second half of the quarter.
The company says a fire at a major Toronto distribution centre in March also cost it $74.6 million, searing its net earnings.
This report by The Canadian Press was first published Aug. 10, 2023.
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