Canadian Tire eyes e-commerce as 'mammoth opportunity'

TORONTO -- The next acquisition for Canadian Tire Corp. will likely be in e-commerce, says the head of the national retailer.

See Full Article

"We set a path for ourselves to be a leader in e-commerce in Canada and that's where we're heading," president and CEO Michael Medline told analysts during a call Thursday following the company's latest quarterly results.

E-commerce is a "mammoth opportunity" for the general merchandiser to establish a firm footing in the new, emerging digital world, Medline said.

"We're doing a great job in our Old World assets, which are going to be a huge part of our business for the foreseeable future," he said. "We're now going to transform ourselves and dominate in e-commerce."

The Toronto-based company (TSX:CTC) said growing its digital business will help shield it in the future from some of the uncontrollable negative factors that can impact its business, such as a weakened economy, declining oil and currency prices and this year's unseasonably warm winter.

Canadian Tire said about a quarter of its sales in the fourth quarter were related to winter gear such as long johns and snowboards, with its clothing chain Mark's having the most seasonal exposure.

Still, it said it overcame these factors, including lower prices for the gasoline it sells, to grow its profit for the period ended Jan. 2.

Canadian Tire reported net income of $241.5 million or $3.01 per share for the fourth quarter. That was up about 17 per cent from $206.6 million or $2.44 per share a year earlier, when several expenses were higher.

Its retail revenue fell 7.5 per cent to $3.38 billion from $3.65 billion, but that was partly due to one less week of selling in the latest quarter and also because of warm weather, the downturn in the Alberta economy and lower gasoline prices.

Excluding petroleum sales, Canadian Tire's overall revenue was $3 billion -- down 5.8 per cent from a year earlier.

Same-store sales -- those open for at least a year -- declined 5.2 per cent at Mark's when compared to the same quarter a year ago, while at FGL Sports they went down 0.4 per cent. Sport Chek saw a 1.6 per cent increase in same-store sales and Canadian Tire recorded a 2.0 per cent rise in same-store sales.

although up 1.6 per cent at the Sport Chek stores. Canadian Tire same-store sales were up 2.0 per cent from the year-earlier quarter.

For the full year ended Jan. 2, 2016, the company had $735.9 million of net income, up from $639.3 million in fiscal 2015. Revenue was $12.3 billion, down from $12.5 billion.



Advertisements

Latest Economic News

  • Michael Kors takes over shoemaker Jimmy Choo

    Economic CTV News
    LONDON -- American fashion brand Michael Kors has bought luxury shoemaker Jimmy Choo in a deal worth $1.35 billion (896 million pounds). Kors says that London-listed Jimmy Choo is "the ideal partner" that will be bolstered with further development of its online presence. Source
  • Smugglers offer crammed big rigs as 'VIP treatment' to U.S.

    Economic CTV News
    SAN DIEGO -- When Thomas Homan, the acting director of U.S. Immigration and Customs Enforcement, was awakened Sunday morning with news that migrants were found dead inside a sweltering tractor-trailer outside a San Antonio Walmart, his mind flashed back to 2003, when he stood at the back of a truck about 200 kilometres southeast of San Antonio that carried 19 dead migrants. Source
  • New Democrats promise to fix Insurance Corp. of B.C. amid spectre of rate hikes

    Economic CTV News
    VANCOUVER -- British Columbia's attorney general is reassuring drivers they will not be on the hook for a hike in auto-insurance rates, despite a report released Monday forecasting prices could soar as much as 30 per cent without immediate and drastic action. Source
  • Venturing Out with Arlene Dickinson and guest Dino Trevisani

    Economic CBC News
    CBC Calgary presents Venturing Out with Arlene Dickinson. It's a seven-part series of candid conversations between Arlene and some of Canada's top entrepreneurs. They cover the highs the lows and everything in-between when it comes to starting and running a business in Canada. Source
  • Asian stocks sag amid caution on earnings, politics

    Economic CTV News
    TOKYO -- Asian share benchmarks sagged Tuesday as investors awaited a slew of corporate earnings reports. A meeting of the Federal Reserve and caution over potential twists and turns in U.S. politics kept most indexes trading within a narrow range. Source
  • New investment rules fail to reveal some hidden fees

    Economic CBC News
    You may have noticed some new information in your latest investment update, and some of it might have you scratching your head. It's all thanks to a new set of rules, mandated by Canadian securities regulators, called Client Relationship Model 2 (CRM2), which is supposed to provide investors with more information about what they're spending to have their money managed, and how their investments are performing. Source
  • 'Energizer Bunny' loonie to peak near 80 cents US: experts

    Economic CTV News
    Two leading Bay Street strategists expect the Canadian dollar’s steady climb over the last two months will start to top out at about 80 cents US, a level it flirted with on Monday amid signs of an increasingly robust economy. Source
  • In Google vs. the EU, a $2.7B fine could just be the start

    Economic CTV News
    SAN FRANCISCO -- Google's parent company Alphabet can easily afford the $2.7 billion write-down it's taking to cover a big antitrust fine in Europe. But it might find it harder to shrug off the rest of the European regulatory assault that's headed its way. Source
  • Alphabet profit slumps on record $2.7B US fine by European Union

    Economic CBC News
    Alphabet Inc. reported a 27.7 percent drop in quarterly profit as the company recorded a previously announced charge related to a record fine imposed on its Google unit by the EU. EU antitrust regulators last month hit Google with a record 2.4-billion-euro ($2.7 billion US) fine for favouring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems. Source
  • Why an 80-cent loonie is good for shoppers but bad for oil producers

    Economic CBC News
    One of the few saving graces of the oil downturn has been that oil is priced in U.S. dollars. Energy companies sell their products in U.S. currency, but pay their expenses in Canadian dollars. So as the loonie dropped over the past three years, it tempered the brutal downturn. Source