Things were not perfect at Canadian retail giant Canadian Tire (TSE:CTC.A), but in many ways, they came out better than expected. Canadian Tire declared its earnings just recently, and managed to duck the worst of the impact from tariffs. Investors were pretty happy about the whole situation, and sent shares shooting up over 4% in Thursday morning’s trading.
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Canadian Tire reported that net income attributable to shareho9lders was down, and significantly, from a year prior. It posted $27.3 million, around $0.49 per diluted share. That was down from $59.9 million, about $1.08 per share, a year prior. However, using a normalized basis, Canadian Tire saw continuing operations pull in $2 per diluted share, up a long way from $1.08 per share.
Meanwhile, revenue was up as well, going from $3.33 billion for the year-ago period to reach $3.46 billion now. The biggest concern for Canadian Tire, reports noted, was the impact of tariffs. Thus, Canadian Tire set up its own “tariff task force,” which was set to finding alternatives to the goods that would be impacted by tariff. For those that do not have ready substitutions, vendor negotiations and margin management stepped in to try and blunt the impact beyond simple replacement.
Unexpected Travel Benefit
And, while Canadian Tire is working to save its customers money on tariff-priced goods, it is also working to help get them some new opportunities for travel, too. A new partnership with WestJet might go a long way in helping Canadians go a long way from home as the two combined their rewards programs. Now, WestJet Rewards and Triangle Rewards will basically let shoppers earn points in both directions.
The new arrangement will go live in 2026, reports note, and those who book flights on WestJet and shop at Canadian Tire will be able to earn both WestJet points and Canadian Tire Money at the same time. This gives shoppers more options, and encourages the use of both services together, which should produce welcome results for both companies.
Is Canadian Tire a Good Company to Invest In?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:CTC.A stock based on four Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 14.81% rally in its share price over the past year, the average TSE:CTC.A price target of C$161.50 per share implies 1.14% upside potential.
