Canadian Tire falls as lower discretionary demand drags Q2 revenue

Canadian Tire

10/08/2023 16:09

** Shares of Toronto-based Canadian Tire Corp  CTCa.TO  down
~4% at $167.16
    ** Co reports a drop in quarterly revenue as demand for
sporting goods and home improvement items slowed at its retail
stores
    ** Says Q2 sales in essentials portfolio up more than 6%,
while discretionary portfolio down more than 3% - conference
call 
    ** Still, Q2 comparable sales up 0.1% as loyalty program
sales rise 80 bps, outperform non-member spend
    ** Retail gross margin rate excluding petroleum up 80 bps on
lower freight costs and stronger product margin at Canadian Tire
retail stores - conference call
    ** The notably better-than-expected retail gross margin was
encouraging to see and a surprise, considering co entered Q2
with elevated inventory but managed to work that down in a
tradedown environment, while improving margin - BMO Capital
Markets analyst Tamy Chen
    ** Up to last close, stock up ~23% YTD

 (Reporting by Juveria Tabassum in Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com;))