Canadian Tire sees cautious consumer spending drag down profits

TORONTO –

Canadian Tire Corp. Ltd. is reporting a drop in earnings and income as inflation tamps down shopper demand for discretionary items.

In the three months ended July 1, the Toronto-based retail big says internet revenue attributable to shareholders fell 32 per cent to $99.4 million from $145.2 million in the identical interval a yr earlier.

The 101-year-old firm says income in its second quarter fell three per cent to $4.26 billion from $4.40 billion the earlier yr.

Canadian Tire says normalized diluted earnings decreased to $3.08 per share from $3.11 per share, roughly in keeping with analyst expectations, in accordance with monetary markets knowledge agency Refinitiv.

CEO Greg Hicks says inflation and price hikes hit shopper demand for non-essential merchandise, particularly within the second half of the quarter.

The firm says a hearth at a serious Toronto distribution centre in March additionally value it $74.6 million, searing its internet earnings.

This report by The Canadian Press was first revealed Aug. 10, 2023.