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Canadian Tire beats estimates as holiday season drives sales – Metro US

Canadian Tire beats estimates as holiday season drives sales

FILE PHOTO: People walk by a Canadian Tire Store
FILE PHOTO: People walk by a Canadian Tire Store in downtown Toronto

(Reuters) -Retailer Canadian Tire Corp Ltd beat Wall Street estimates for quarterly profit and revenue on Thursday, as consumers splurged on sporting goods, garden equipment and home decor during the holiday season.

A pandemic-driven trend of spending more time indoors and remodeling homes has continued, boosting demand for tools and other home-related items. People also spent more on Halloween and Christmas decor.

The Toronto, Ontario-based company said easing restrictions on in-store shopping also led to higher sales. The retailer, however, said its e-commerce sales suffered as a result.

Canadian Tire’s retail segment revenue rose 5.4% to C$4.83 billion and total revenue rose 5.4% to C$5.14 billion ($4.05 billion) in the fourth quarter ended Jan. 1, beating analysts’ average estimate of C$4.76 billion, according to IBES data from Refinitiv.

Net income attributable to shareholders rose to C$508.5 million, or C$8.34 per share, from C$488.8 million, or C$7.97 per share. Excluding items, Canadian Tire earned C$8.42 per share, beating estimates of C$6.70 cents per share.

($1 = 1.2699 Canadian dollars)

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Maju Samuel and Saumyadeb Chakrabarty)

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