Entering text into the input field will update the search result below

Canadian Tire grows Q1 profits, sales

May 13, 2011 11:56 AM ETCTC
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Toronto-based general retailer Canadian Tire (TSE:CTC) saw first quarter profits grow 13% as sales increased despite reduced customer traffic due to bad weather.

For the first three months of 2011, the company reported net income of $58.4 million, or 71 cents per share, compared to $51.6 million, or 63 cents per share, a year earlier.

Consolidated revenues increased 4.6% to $1.98 billion, as retail sales rose 3.7% during the period.

"We saw strong retail sales in January and February, however, unseasonable weather in March, and continuing into April, has reduced our customer traffic and sales in seasonal product categories," said president and CEO Stephan Wetmore.

"We are a strong business, executing well on all our key programs, so it's unfortunate to see how our seasonal business impacted our results this quarter.”

The lack of spring weather and the resulting decrease in customer traffic led to a 0.6% decrease in retail sales at Canadian Tire stores in the first quarter, specifically in weather-related categories such as gardening, cycling and backyard.

Retail sales at Canadian Tire gas locations rose 15% driven by a 4.2% increase in gas volumes. The company credits the increase to new locations built around the 400 series highways in Ontario, alongside the jump in gas prices over the past year.

Sales in light automotive maintenance parts, tires and automotive maintenance fluids also grew year-over-year as part of the company’s aim to drive sales.

At its Marks Work Wearhouse segment, men’s industrial footwear and workwear contributed to sales growth of 6.2%, compared to 3.8% growth a year earlier.

Canadian Tire announced Monday that it will acquire sporting goods retailer Forzani, in a deal worth $771 million.

The company provides work for about 58,000 people with 458 stores across the country.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.