Canadian Tire Reports Q3 2024 Earnings and Dividend Boost

Canadian Tire Corp ( (CDNTF) ) has released its Q3 earnings. Here is a breakdown of the information Canadian Tire Corp presented to its investors.

Canadian Tire Corporation, Limited is a diversified company operating in the retail sector, financial services, and real estate investment through CT REIT, known for offering a wide range of products and services across Canada including automotive, sporting goods, and apparel.

In its third quarter of 2024, Canadian Tire Corporation reported a decrease in consolidated comparable sales by 1.5% year-over-year, but saw an improvement in earnings per share to $3.59 from a loss in the previous year. It also announced an annual dividend increase for the 15th consecutive year and plans to repurchase up to $200 million of Class A Non-Voting Shares in 2025.

Key financial highlights from the quarter include improved retail profitability driven by a strong retail gross margin and cost controls, despite a decline in retail revenue. SportChek showed sales growth of 2.9%, while Canadian Tire Retail and Mark’s faced sales declines. The company also saw an increase in customer loyalty engagement and a higher Net Promoter Score across its banners. Meanwhile, the financial services segment experienced a decrease in income before taxes due to higher net write-offs and operating expenses.

The company continues to invest significantly in its Better Connected strategy, enhancing in-store and digital experiences and improving supply chain productivity. With a focus on owned brand products and ongoing store refresh initiatives, Canadian Tire aims to strengthen its market position and drive future growth.

Looking ahead, Canadian Tire Corporation remains committed to managing economic headwinds while leveraging its investments in technology and customer experiences to enhance operational efficiency and profitability.