Canadian Tire Corporation Reports Strong First Quarter 2025 Results

Canadian Tire Corporation, Limited (CTC or the Company) announced results for its first quarter ended March 29, 2025.

• Consolidated comparable sales¹ growth was 4.7%; Retail Revenue was up 4.0%.
• Q1 saw essential and discretionary purchasing up, with increased customer traffic.
• Q1 Normalized Diluted Earnings Per Share¹ (EPS) was $2.18, up $0.80; Diluted EPS was $0.67, down $0.71 compared to the prior year.

“We had a strong quarter of sales and earnings growth, as we controlled the controllables, elevated customer loyalty, and delivered the great value and seasonal products customers were seeking. It’s clear Canadians are choosing CTC,” said Greg Hicks, President and CEO, Canadian Tire Corporation.

“Since March, we also announced our new transformative growth strategy – True North – and have hit the ground running with investments in new store concepts, dramatic expansion of Triangle Rewards including new RBC and WestJet loyalty partnerships, and a new company structure that maximizes our world-class customer insights and our ability to go to market in more efficient and modern ways.”

First-Quarter Highlights

• Consolidated comparable sales were up 4.7% and consolidated retail sales¹ were up 5.1%. Increased trips drove sales growth across all banners, with particular strength in Ontario, Quebec and Eastern Canada.
  • Canadian Tire Retail (CTR) comparable sales¹ grew 4.7%, with growth across all CTR divisions except Fixing, led by strong growth in seasonal weather-related categories. Auto maintenance, outdoor tools, and auto parts were the top-performing lines of business in the quarter.
  • SportChek delivered a third consecutive quarter of comparable sales¹ growth, up 6.3%, driven by strong sales across both corporate and franchise stores. Skiing and snowboards, hockey, and outerwear were the top performing categories in the quarter.
  • Mark’s comparable sales¹ were up 2.2%, driven by industrial wear. New store openings continued to be the most significant contributor to retail sales growth and advances in in-store Net Promoter Score (NPS).
• Backed by the strength of the Canadian Tire brand and Triangle member engagement, loyalty sales growth outperformed retail sales. Loyalty penetration¹ was up 132 bps, reaching 54.5% of retail sales on a direct scan, rolling 12-month basis.
• Consolidated income before income taxes (IBT) was down $51.3 million to $51.6 million and Diluted EPS was $0.67, including the results for Helly Hansen business (now included in discontinued operations) and expenses related to the implementation of the Company’s True North strategy.
• Normalized for the True North expenses, IBT¹ on a continuing operations basis was up $62.8 million to $165.7 million, which resulted in Normalized Diluted EPS (continuing operations) of $2.00, up $0.92 from last year. Improved IBT was mainly due to an increase in retail segment profitability.
  • Normalized Retail IBT¹ on a continuing operations basis was $50.9 million, up $69.2 million, due to higher gross margin and lower interest expense.
  • Financial Services IBT was $97.0 million, up $1.3 million, as higher revenue offset expected increases in net impairment losses, as well as higher funding costs.

Strategic Highlights

• During the first quarter, CTC launched True North, its new four-year transformative growth strategy, designed to drive core retail growth through four strategic cornerstones: disciplined capital investments to build exceptional digital and store experiences; an expanded Triangle Rewards loyalty system; creating more personalized and data-driven customer relationships; and a more agile, tech-driven and efficient operating company. The strategy is designed to increase shareholder value above the Company’s historic levels. True North includes more than $2 billion in capital investment over the four years starting in 2025 across a series of value creating initiatives in each focus area, which will be overseen by a newly established transformation management office.
• The transformation is underway, with progress on a number of fronts.
  • As part of True North‘s focus on expanding the Triangle Rewards system, the Company announced today a new partnership with WestJet Rewards, in addition to its March 27^th announcement of the addition of RBC as a strategic Triangle partner. Both partnerships are expected to launch in 2026 and will be key building blocks for the strategy, creating more value for Triangle members, increasing member acquisition and engagement, and contributing to retail sales growth by expanding the reach and issuance of Canadian Tire Money beyond CTC’s retail banners and Canadian Tire Bank.
  • True North‘s store enhancement program will invest in modern new store formats, expected to improve sales, margin and customer experience. Planned investments in 2025 include more than 30 Canadian Tire store projects and 18 Mark’s store projects, including seven new Bigger, Better, Bolder stores, capitalizing on Mark’s record of accretive returns and emerging market share opportunities in the casual apparel sector. In addition, SportChek is optimizing its portfolio, and opened with the second of its two new concept “Destination Sport” stores, located in Toronto, Ontario, in April of 2025.
  • Since announcing the True North strategy, the Company has begun restructuring into a more agile operating company under a new senior leadership team.
  • CTC is making progress towards the completion of its previously announced divestiture of the Helly Hansen business. The transaction is expected to close before the end of the second quarter, unlocking capital for shareholders and strategic capital investments.

Consolidated Overview

As at March 29, 2025, the assets and liabilities of Helly Hansen have been classified as held for sale and the Helly Hansen results, net of intersegment results, have been presented separately as discontinued operations in the Company’s current and comparative results. Unless otherwise indicated, all financial information represents the Company’s results from continuing operations.

• Revenue was $3,456.7 million, up 3.7% compared to $3,332.8 million in the same period last year.
• Consolidated IBT was $51.6 million, down $51.3 million compared to the prior year. On a normalized basis, consolidated income before income taxes was up $62.8 million.
• Diluted EPS was $0.49, or $2.00 on a normalized basis, compared to $1.08 on a normalized basis in the prior year.
• Diluted EPS for discontinued operations was $0.18 in Q1 2025, compared to $0.30 in Q1 2024.
• Refer to the Company’s Q1 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 $3,423.0 million, up 5.1%, compared to the first quarter of 2024. Retail sales (excluding Petroleum)¹ were up 4.9% and consolidated comparable sales were up 4.7%.
• CTR retail sales¹ were up 5.0% and comparable sales were up 4.7% over the same period last year.
• SportChek retail sales¹ increased 6.5% over the same period last year, and comparable sales were up 6.3%.
• Mark’s retail sales¹ increased 2.6% over the same period last year, and comparable sales were up 2.2%.
• Retail revenue was $3,061.8 million, an increase of $117.3 million, or 4.0%, compared to the prior year; Retail revenue (excluding Petroleum)¹ was up 3.5%.
• Retail gross margin was $977.8 million, up 4.2% compared to the first quarter of the prior year, and up 4.0% excluding Petroleum¹; Retail gross margin rate (excluding Petroleum)¹ increased 19 bps to 36.1%.
• Retail IBT was $(63.2) million in Q1 2025 or $50.9 million on a normalized basis, compared to $(18.3) million on a normalized basis in the prior year.
• Retail Return on Invested Capital¹ (ROIC), calculated on a trailing twelve-month basis, was 10.4% at the end of the first quarter of 2025, compared to 8.9% at the end of the first quarter of 2024, due to the increase in earnings over the prior period.
• Refer to the Company’s Q1 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 $97.0 million compared to $95.7 million in the prior year.
• As expected, net write-offs and funding costs were higher when compared to the same quarter last year but were offset by revenue, which was up 1.7%.
• Gross Average Accounts Receivable¹ (GAAR) was up 1.6% relative to the prior year, driven by continued cardholder engagement that led to higher average account balance¹ which were up 2.3%.
• Refer to the Company’s Q1 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 Overview

• Diluted Adjusted Funds from Operations¹ (AFFO) per unit was up 3.9% compared to Q1 2024; diluted net income per unit was $0.363, compared to $0.345 in Q1 2024.
• Increased its monthly distribution per unit by 2.5% to $0.07903, or $0.94836 per unit on an annualized basis, that will be effective with the July 15, 2025 payment to unitholders of record on June 30, 2025.
• For further information, refer to the Q1 2025 CT REIT earnings release issued on May 5, 2025.

Capital Allocation

Capital Expenditures

• Total capital expenditures were $115.9 million, compared to $121.4 million in Q1 2024.
• Operating capital expenditures¹ were $110.4 million, compared to $119.1 million in Q1 2024.
• 2025 operating capital expenditures are expected to be towards the upper end of the Company’s previously disclosed range of $525.0 million to $575.0 million.

Quarterly Dividend

• On May 7, 2025, the Company’s Board of Directors declared a dividend of $1.775 per share, payable on September 1, 2025, to shareholders of record as of July 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 the launch of its True North transformative growth strategy, the Company increased its share repurchase intention to up to $400 million, subject to the completion of the sale of Helly Hansen (the 2025 Share Purchase Intention). Any such repurchases will be made under the Company’s 2025-26 Normal Course Issuer Bid.
• In the first quarter of 2025, $78.1 million of Class A Non-Voting Shares were repurchased under the 2025 Share Purchase Intention.

For full results click here.

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