Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q1 2024 Earnings Presentation
18 slides from Canadian Tire's earnings presentation, May 9, 2024
Slide 1: Canadian Tire Corporation Q1 2024 Financial Results and Segment Eliminations
Canadian Tire Corporation Q1 2024 Financial Results and Segment Eliminations
Slide 2: Forward Looking Information
Forward Looking Information This document contains information that may constitute forward-looking information reflecting Management’s current expectations relating to matters such as future financial performance and operating results of the Company. Forward- looking information provides insights re
Slide 3: Executive Participants
Executive Participants Greg Hicks President & Chief Executive Officer, Canadian Tire Corporation Gregory Craig Executive Vice President & Chief Financial Officer, Canadian Tire Corporation TJ Flood Executive Vice President & President, Canadian Tire Retail FIRST QUARTER 2024 | EXECUTIVE PARTICIPANTS
Slide 4: Table of Contents
Table of Contents Topic Slide Number Q1 2024 HIGHLIGHTS 5 Q1 2024 FINANCIAL RESULTS 9 Q1 2024 SEGMENT ELIMINATIONS 16 FIRST QUARTER 2024 | TABLE OF CONTENTS 4
Slide 5: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS FIRST QUARTER 2024 | HIGHLIGHTS 5
Slide 6: Q1 2024 Highlights
Q1 2024 Highlights • Consolidated comparable sales1 were down 1.6%. Traffic to retail stores was only slightly below last year, although consumer spending remained down in a challenging consumer demand environment. Strong in-stock positions and enhanced store experiences contributed to improved cust
Slide 7: Q1 2024 Highlights
Q1 2024 Highlights • Consolidated Income Before Income Taxes (IBT) was $121.8 million, up $55.2 million compared to Q1 2023. On a normalized basis1, IBT was down $12.5 million or 9.3%. • Retail IBT was $0.6 million, up $12.2 million on a normalized basis1 compared to a loss of $11.6 million in Q1 20
Slide 8: Q1 2024 Highlights
Q1 2024 Highlights • Better Connected strategy investments in loyalty, supply chain, digital and stores are driving operating benefits as well as improving the omnichannel customer experience: • Investments in loyalty partnership capabilities resulted in the introduction of our Petro-Canada partners
Slide 9: Q1 Financial Results
Q1 FINANCIAL RESULTS FIRST QUARTER 2024 | CONSOLIDATED RESULTS 9
Slide 10: Q1 2024 Consolidated Financial Results
Q1 2024 Consolidated Financial Results (C$ in millions, except where noted) Q1 2024 Q1 2023 Change Retail sales1 $ 3,257.5 $ 3,326.5 (2.1) % Revenue $ 3,524.9 $ 3,707.2 (4.9) % Gross margin dollars $ 1,250.2 $ 1,281.9 (2.5) % Gross margin rate1 35.5 % 34.6 % 89 bps Other expense (income) $ (0.9) $ 7
Slide 11: Q1 2024 Normalizing Items
Q1 2024 Normalizing Items • There were no normalizing items in the first quarter of 2024. In the first quarter of 2023, the Company normalized for $67.7 million in costs associated with a fire at its A.J. Billes Distribution Centre (“DC fire”), which were included in Other expense (income) in the Co
Slide 12: Selected Q1 2024 Normalized Metrics: Consolidated
Selected Q1 2024 Normalized Metrics: Consolidated (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q1 2024 Items1 Q1 20242 Q1 2023 Items1 Q1 20232 Change3 Revenue $ 3,524.9 $ — $ 3,524.9 $ 3,707.2 $ — $ 3,707.2 (4.9) % Cost of producing revenue 2,274.7 — 2,274.7 2,4
Slide 13: Retail Segment Financial Results
Q1 2024 Retail Segment Financial Results (C$ in millions, except where noted) Q1 2024 Q1 2023 Change Retail sales1 $ 3,257.5 $ 3,326.5 (2.1) % Revenue $ 3,136.6 $ 3,337.9 (6.0) % Gross margin dollars $ 1,038.1 $ 1,050.0 (1.1) % Gross margin rate1 33.1 % 31.5 % 164 bps Other expense (income) $ (37.9)
Slide 14: Selected Q1 2024 Normalized Metrics: Retail
Selected Q1 2024 Normalized Metrics: Retail (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q1 2024 Items1 Q1 20242 Q1 2023 Items1 Q1 20232 Change3 Revenue $ 3,136.6 $ — $ 3,136.6 $ 3,337.9 $ — $ 3,337.9 (6.0) % Cost of producing revenue 2,098.5 — 2,098.5 2,287.9 —
Slide 15: Financial Services Results
Q1 2024 Financial Services Results (C$ in millions) Q1 2024 Q1 2023 Change Revenue $ 389.0 $ 369.8 5.2 % Gross margin dollars $ 189.9 $ 211.3 (10.2) % Gross margin rate1 48.8 % 57.2 % (833) bps Other expense (income) $ 0.5 $ 1.2 (55.8) % Selling, general and administrative expenses 96.6 90.7 6.2 % D
Slide 16: Segment Eliminations
Q1 2024 SEGMENT ELIMINATIONS FIRST QUARTER 2024 | SEGMENT ELIMINATIONS 16
Slide 17: Segment Reporting Note Disclosure
Q1 2024 Segment Reporting Note Disclosure FIRST QUARTER 2024 | SEGMENT ELIMINATIONS 17 1 CT REIT revenue is comprised of $108.1 million of base rent and $36.1 million in expense and capital recoveries and other revenue. The property revenue attributable to CTC is $129.0 million. 2 This measure is a
Slide 18: Thank You
Thank You For more information: http://investors.canadiantire.ca 18