Canadian Tire Corp Announces Q2 Results Alongside 12th Consecutive Annual Dividend Bump
Nov 11, 2021 By MarketDepth
Canadian Tire Corporation, Limited (TSX: CTC) today announced its third quarter results along with a 12th consecutive annual dividend increase.
Despite strong Q3 comparable sales, the company missed on market expectations for quarterly profit and revenue. Adjusted earnings were C$4.20 a share whilst analysts were expecting C$4.32 a share. Revenue also fell to C$3.91 billion from C$3.99 billion, despite an increase in retail sales.
Sales Grew from Previous Year
Nevertheless, Canadian Tire saw its consolidated comparable sales grow 3.3% compared to 2020 and 21% compared to 2019. Backyard living, gardening and hockey were amongst the top performing businesses in the quarter. Furthermore, the company will raise its annual dividend from $4.70 to $5.20 per share, with the 10.6% increase reflecting 12 years of consecutive increases.
“I am pleased with our results this quarter as we delivered exceptional sales growth against 2019 and strong growth against 2020. Our customers continue to connect with us in-store and online and our eCommerce sales remain at twice pre-pandemic levels, demonstrating the success of our strengthened omni-channel capabilities across our banners. I am proud of the work the team has delivered to achieve our previously committed operating efficiency target of $200+ million in annualized savings ahead of schedule, as we continue to prove our ability to transform our Company and invest to modernize our business. We see the path to an additional $100 million in savings through 2022. Our confidence in the Company’s future is evidenced by the significant increase in our dividend and the reinstatement of our share repurchase program, which will see us repurchase up to $400 million by the end of 2022.”Greg Hicks, President and CEO, Canadian Tire Corporation