Canadian Tire Corporation Reports Strong Second Quarter 2025 Results

Canadian Tire Corporation, Limited (CTC or the Company) announced results for its second quarter ended June 28, 2025.

• Consolidated comparable sales¹ growth was 5.6%, led by Canadian Tire Retail (CTR) up 6.4%.
• Retail Revenue up 5.3% and up 9.0% excluding Petroleum¹.
• Diluted Earnings Per Share (EPS) was $2.04, including a discontinued operations loss of $1.03; Q2 Normalized Diluted Earnings Per Share¹ from Continuing Operations was $3.57.

“In Q2, Canadians came to us for the great seasonal products and value they were seeking, driving strong sales and revenue growth. In a dynamic consumer environment, customers continued to turn to us for the items they need for life in Canada,” said Greg Hicks, President and CEO, Canadian Tire Corporation.

“Our True North strategy is underway and moving at pace. Since March, we have rolled out new store concepts, invested in transformative technology, expanded Triangle Rewards loyalty partnerships, and secured the considerable privilege of stewarding HBC’s great Canadian brands forward. Our team is committed to our Canadian prosperity, and I celebrate their efforts.” 

Second-Quarter Highlights

• Consolidated comparable sales were up 5.6%, with growth in all banners and provinces led by CTR in Western Canada.
  • CTR comparable sales¹ were up 6.4% in the Company’s most discretionary quarter, with strong growth across CTR’s four largest divisions. Being ready for spring/summer drove growth of more than 8% in Seasonal and Gardening. Automotive grew for the 20th consecutive quarter.
  • SportChek delivered its fourth consecutive quarter of comparable sales¹ growth, up 3.9%, driven by sales of footwear and hardgoods categories, such as golf.
  • Mark’s comparable sales¹ were up 1.0%. Industrial footwear and workwear categories grew, partially offset by softer casualwear and outerwear sales.
• Loyalty sales outpaced non-loyalty sales growth in the quarter; both saw strong growth as Canadians made more trips to CTC banners.
• Retail Revenue was up 5.3% or 9.0% excluding Petroleum, as the business responded to sales growth.
• Diluted EPS was $2.04, down $1.52 mainly due to the $1.03 loss on discontinued operations for results up to the May 31^st completion of the Helly Hansen sale and expenses related to the Company’s True North transformation.
• Normalized for the True North expenses, Diluted EPS (Continuing Operations) was $3.57, down $0.15. Normalized IBT¹ was down $10.9 million to $296.0 million. Growth in normalized retail IBT of $17.6 million was more than offset by lower income from other segments, including lower Financial Services IBT due to investments in the business.
• Retail Return on Invested Capital (ROIC),¹ calculated on a trailing twelve-month basis, was 10.3%, compared to 9.0% at the end of Q2 2024. This was driven by increased earnings and lower invested capital.

Strategic Highlights

• During Q1 2025, CTC launched its True North transformative growth strategy, designed to drive core retail growth through four strategic cornerstones: disciplined capital investments in digital and store experiences; an expanded Triangle Rewards loyalty system; more personalized and data-driven customer relationships; and a more agile, tech-driven and efficient operating company.
• The transformation is underway, with progress on a number of fronts.
  • At the end of June, 21 of the 54 store enhancement projects planned for 2025 had been completed across eight provinces and territories, with store enhancement representing approximately $116 million of operating capital expenditure¹ in the first half. Projects completed included:
    • 14 CTR store refreshes, including a store relocation in Kingston, Ontario.
    • Five Mark’s store refreshes, including its ninth Bigger, Better, Bolder store in Ancaster, Ontario.
    • SportChek’s second Destination Sport store in Toronto, Ontario.
    • The Company also extended its PHL presence into Saskatchewan, with the opening of a new store in Regina.
  • The revised go-to-market strategy for its Atmosphere business is well underway with 15 of 17 previous stand-alone sites now co-located within SportChek stores.
  • The expansion of Triangle Rewards remains on track, with the expected launch of loyalty partnerships with RBC (announced in March 2025) and WestJet (announced in May 2025) by the first half of 2026.
  • The Company’s Owned Brands portfolio continues to be a fundamental element to its core retail portfolio and product assortment. On May 15, 2025, the Company entered into a definitive agreement to become the home of iconic Canadian brands and other intellectual property of the Hudson’s Bay Company (HBC). This includes the HBC Stripes and various HBC company names, logos, designs, Coat of Arms and brand trademarks.
  • The previously-announced investments for the initiatives that underpin the True North strategy are underway, as is the implementation of the previously-announced operating structure to drive increased agility and efficiency. The reorganization of corporate teams under the new structure is expected to be completed by the end of Q3 2025, with initial savings beginning in Q4 2025.

Consolidated Overview

Unless otherwise indicated, all financial information represents the Company’s results from continuing operations. The Helly Hansen results, net of intersegment results, have been presented separately as discontinued operations up to the date of sale on May 31, 2025, in the current and comparative results.

Second Quarter

• Revenue was $4,201.9 million, up 5.2% compared to $3,995.4 million in the same period last year; Revenue excluding Petroleum¹ was $3,733.5 million, an increase of 8.4% compared to the prior year.
• Consolidated IBT was $258.3 million, down $48.6 million compared to the prior year. On a normalized basis, consolidated IBT was down $10.9 million.
• Diluted EPS on a normalized basis was $3.57, compared to $3.72 in the prior year.
• Diluted EPS for discontinued operations was $(1.03) in Q2 2025, compared to $(0.16) in Q2 2024.
• Refer to the Company’s Q2 2025 MD&A section 4.1.1 for information on normalizing items and additional details on events that have impacted the Company in the quarter.

Retail Segment Overview

• Retail sales¹ were $5,161.7 million, up 3.2% compared to the second quarter of 2024. Retail sales excluding Petroleum¹ and consolidated comparable sales were both up 5.6%. 
• CTR retail sales¹ were up 6.4% and comparable sales were up 6.4% over the same period last year.
• SportChek retail sales¹ increased 3.3% over the same period last year, and comparable sales were up 3.9%.
• Mark’s retail sales¹ increased 1.8% over the same period last year, and comparable sales were up 1.0%.
• Retail revenue was $3,810.3 million, an increase of $192.8 million, or 5.3%, compared to the prior year; Retail revenue excluding Petroleum was up 9.0%.
• Retail gross margin was $1,214.8 million, up 5.8% compared to the second quarter of the prior year, and up 6.2% excluding Petroleum¹; Retail gross margin rate excluding Petroleum¹ decreased 90 bps to 34.8%, primarily due to unfavourable banner sales and shipment mix, and incremental Q1 purchases made during a period of Canadian dollar weakness, resulting in product cost headwinds this quarter. 
• Retail SG&A was $779.6 million, an increase of $83.5 million, primarily due to increased IT and IT-related investments in the True North initiatives, higher variable compensation, as well as inflationary and volume-related increases to support growth.
• Retail segment IBT was $161.1 million in Q2 2025 or $198.8 million on a normalized basis¹, compared to $181.2 million in the prior year.
• Refer to the Company’s Q2 2025 MD&A sections 4.2.1 for information on normalizing items and additional details on events that have impacted the Retail segment in the quarter.

Financial Services Overview

• Financial Services segment IBT was $74.1 million compared to $88.5 million in the prior year, mainly as a result of increased infrastructure and True North investments, which more than offset higher gross margin dollars.
• Revenue was up 2.3%, partially offset by higher net impairment losses, as expected.
• Gross Average Accounts Receivable¹ was up 1.7% relative to the prior year, driven by continued cardholder engagement that led to a 2.0% increase in average account balance¹, with credit card sales growth¹ up 3.9%.
• Refer to the Company’s Q2 2025 MD&A section 4.3.1 and 4.3.2 for additional details on events that have impacted the Financial Services segment in the quarter.

CT REIT Overiview

• Diluted Adjusted Funds from Operations¹ (AFFO) per unit was up 1.6% compared to Q2 2024; diluted net income per unit was $0.365, compared to $0.346 in Q2 2024.
• Announced two new investments totaling $66 million, which are expected to add approximately 252,000 square feet of incremental gross leasable area upon completion.
• For further information, refer to the Q2 2025 CT REIT earnings release issued on August 5, 2025.

Capital Allocation

Capital Expenditures

• Total capital expenditures were $114.1 million, compared to $139.8 million in Q2 2024.
• Operating capital expenditures were $103.0 million in the quarter, compared to $128.1 million in Q2 2024.
• 2025 operating capital expenditures are expected to be within the Company’s previously disclosed range of $525.0 million to $575.0 million.

Quarterly Dividend

• On August 6, 2025, the Company’s Board of Directors declared a dividend of $1.775 per share, payable on December 1, 2025, to shareholders of record as of October 31, 2025. The dividend is considered an “eligible dividend” for tax purposes.

Share Repurchases

• On November 7, 2024, the Company announced its intention to repurchase up to $200 million of its Class A Non-Voting Shares, in excess of the amount required for anti-dilutive purposes, in 2025.
• On March 6, 2025, as part of the announcement of its True North strategy, the Company increased its share repurchase intention to up to $400 million in 2025, subject to the completion of the sale of Helly Hansen (the 2025 Share Purchase Intention); repurchases will be made under the 2025-26 NCIB.   
• At the end of Q2, the Company had repurchased a total of 1,551,328 shares for $250.1 million under the 2025 Share Purchase Intention.

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About Canadian Tire Corporation

Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) (or CTC), is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. Party City, PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark’s, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts and Atmosphere, which offer the best active wear brands. The Company’s close to 1,700 retail and gasoline outlets are supported and strengthened by CTC’s Financial Services division and the tens of thousands of people employed across Canada and around the world by CTC and its local dealers, franchisees and petroleum retailers. In addition, CTC owns and operates Helly Hansen, a leading technical outdoor brand based in Oslo, Norway. For more information, visit Corp.CanadianTire.ca.

Contact:

Stephanie Nadalin – Media – stephanie.nadalin@cantire.com – (647) 271-7343

Source: Canadian Tire Corporation Limited