Canadian Tire Corporation Ltd. (CDNAF)
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Canadian Tire - Oh Canada! (Rating Upgrade)
Canadian Tire's Q1 results show a 4.7% increase in consolidated comparable sales and a 4.0% rise in retail revenue, despite economic and tariff challenges. Normalized Diluted EPS for Q1 was $2.18, up $0.80, driven by growth across all categories and brands, including SportChek and Marks. Diluted EPS was $0.67, down $0.71, due to increased expenditure on the 'True North' strategic initiatives and the exit of the Helly Hansen business.
Canadian Tire: Tariffs Cloud Outlook
Canadian Tire remains a long-term hold due to its strong brand, sound management, and clear strategy, despite short-term economic challenges and tariff uncertainties. FY 2024 results showed modest sales growth and a 21% increase in EPS, but missed analyst expectations, leading to a 7.4% share price drop. The looming threat of U.S. tariffs and potential higher unemployment rates could significantly impact consumer demand and increase loan write-offs, posing risks to forward earnings.
Canadian Tire prepares to mitigate impact of potential tariffs amid possible trade war
Canadian Tire CEO Greg Hicks said on Thursday that the retailer is preparing to mitigate potential impacts from tariffs amid a possible trade war between Canada and the United States.
Canadian Tire: Hanging In There
I previously rated Canadian Tire Corporation, Limited as a hold due to concerns about the Canadian economy, but initiated a position in my account. Q3 earnings per share improved significantly, but normalizing for certain factors, EPS was flat quarter on quarter. Sales were under pressure, with a slight reduction overall.
Canadian Tire Offers A Good Earnings Yield Despite Temporary Slowdown
Canadian Tire is a Canadian retail company that retails a wide range of products ranging from automotive to gardening products. The company has a track record of stable earnings with steady revenue growth and increasing margins as private label sales and operating leverage push margins higher. Current macroeconomic pressures and strong comparison figures have recently pressured the revenue trend also lowering margins, but a medium-term recovery should be likely.
