Canadian Tire Q2 2025 Earnings Call Transcript: Management Discusses Growth and Performance

Canadian Tire Corporation reported Q2 2025 earnings with a focus on continuing operations. The company's CEO, President, and Director, Gregory Huber Hicks, and Executive VP & CFO, Darren G. Myers, will discuss the results. The earnings disclosure is available on their website, and the discussion will not include the discontinued Helly Hansen business.

Canadian Tire Corporation (CTC) has released its Q2 2025 earnings report, focusing on continuing operations. The company's CEO, Gregory Huber Hicks, and Executive Vice President & CFO, Darren G. Myers, discussed the results during a recent earnings call. The earnings disclosure is available on the company's website, and the discussion did not include the discontinued Helly Hansen business.

The company reported a normalized EPS of $3.57, which fell short of the expected $3.87, resulting in a negative surprise of 7.75% [1]. Despite the EPS miss, the company reported revenue of $4.2 billion, surpassing the forecast of $4.09 billion by 2.69%. The stock remained stable with no significant change in pre-market trading, maintaining its last close value of $260.

Canadian Tire's Q2 EPS was below expectations, but revenue exceeded forecasts. Retail revenue increased by 9%, excluding petroleum, with a strong performance in comparable sales. The company is investing heavily in its True North strategy and supply chain automation. E-commerce sales saw an 8% increase, with a notable rise in same-day delivery orders.

The company demonstrated resilience in its retail operations, achieving a 6.4% increase in comparable sales at Canadian Tire Retail (CTR) and a 9% rise in retail revenue when excluding petroleum. The company also saw a 6.2% growth in retail gross margin dollars, although the margin rate decreased by 90 basis points to 34.8%. The performance was bolstered by strategic initiatives such as opening a new distribution center and refreshing several retail stores.

Financial highlights include revenue of $4.2 billion, up from the forecast of $4.09 billion, and earnings per share of $3.57, down 4% year-over-year. The retail gross margin rate was 34.8%, down 90 basis points.

The market reaction to the earnings announcement showed no significant movement in pre-market trading, with the stock holding steady at its previous close of $260. The stock has fluctuated between a 52-week high of $274.01 and a low of $192.1, indicating relative stability despite the earnings miss.

Looking forward, Canadian Tire remains committed to its True North transformation strategy, with investments expected to continue through 2026. The company aims for a full-year retail gross margin of around 35% and anticipates cost benefits from its restructuring efforts to emerge in 2027-2028. The company's market capitalization of $10.2 billion and consistent dividend growth history of 14 consecutive years demonstrate its financial stability and commitment to shareholder returns.

References:
[1] https://au.investing.com/news/transcripts/earnings-call-transcript-canadian-tire-q2-2025-misses-eps-forecast-93CH-3966058