Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q2 2024 Earnings Presentation
22 slides from Canadian Tire's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Financial Results and Segment Eliminations
Canadian Tire Corporation Q2 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 SECOND QUARTER 2024 | EXECUTIVE PARTICIPANT
Slide 4: Table of Contents
Table of Contents Topic Slide Number Q2 2024 HIGHLIGHTS 5 2023 TO 2024 DILUTED EARNINGS PER SHARE (EPS) BRIDGE AND KEY IMPACTS 9 Q2 2024 FINANCIAL RESULTS 11 Q2 2024 SEGMENT ELIMINATIONS 19 SECOND QUARTER 2024 | TABLE OF CONTENTS 4
Slide 5: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS SECOND QUARTER 2024 | HIGHLIGHTS 5
Slide 6: Q2 2024 Highlights
Q2 2024 Highlights • Consolidated comparable sales1 were down 4.6%. The consumer demand environment remained challenging, compounded by cold and wet weather, contributing to sales declines in all regions outside Atlantic Canada. • Canadian Tire Retail (CTR) comparable sales1 were down 5.6%, compared
Slide 7: Q2 2024 Highlights
Q2 2024 Highlights • Retail gross margin rate (excluding Petroleum)1 remained strong, up 36 bps to 36.0%. Margin improvement at CTR and Helly Hansen offset higher promotional intensity. Favourable freight rates also contributed to the improvement. • Consolidated income before income taxes (IBT) was
Slide 8: Q2 2024 Highlights
Q2 2024 Highlights • CTC continues to make solid progress on the key areas within its Better Connected strategy to enhance the customer experience and drive efficiencies, including: • Prioritizing the integration of in-store technology and improving access to assortment through the refresh, expansio
Slide 9: 2023 to 2024 Diluted EPS Bridge and Key Impacts
2023 to 2024 Diluted EPS Bridge and Key Impacts SECOND QUARTER 2024 | EPS BRIDGE 9
Slide 10: 2023 to 2024 Diluted EPS Bridge and Key Impacts
2023 to 2024 Diluted EPS Bridge and Key Impacts Q2 2024 Diluted EPS up 48 cents to $3.56, of which 31 cents is attributable to operational improvements, lower tax rate and non-controlling interests Q2 2023 Normalizing items: +$0.48 1 (+) A.J. Billes DC fire (direct costs): $74.6M (or the equivalent
Slide 11: Q2 Financial Results
Q2 FINANCIAL RESULTS SECOND QUARTER 2024 | CONSOLIDATED RESULTS 11
Slide 12: Consolidated Financial Results
Q2 2024 Consolidated Financial Results YTD YTD (C$ in millions, except where noted) Q2 2024 Q2 2023 Change Q2 2024 Q2 2023 Change Retail sales1 $ 5,000.2 $ 5,214.9 (4.1) % $ 8,257.7 $ 8,541.4 (3.3) % Revenue $ 4,132.7 $ 4,255.8 (2.9) % $ 7,657.6 $ 7,963.0 (3.8) % Gross margin dollars $ 1,407.3 $ 1,4
Slide 13: Normalizing Items
Q2 2024 Normalizing Items • There were no normalizing items in the first and second quarter of 2024. In the first and second quarter of 2023, the Company normalized for $142.3 million in costs associated with a fire at its A.J. Billes Distribution Centre (DC fire) and $33.3 million related to the GS
Slide 14: Selected Normalized Metrics – Consolidated
Q2 2024 Selected Normalized Metrics – Consolidated (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q2 2024 Items1 Q2 20242 Q2 2023 Items1 Q2 20232 Change3 Revenue $ 4,132.7 $ — $ 4,132.7 $ 4,255.8 $ — $ 4,255.8 (2.9) % Cost of producing revenue 2,725.4 — 2,725.4 2,
Slide 15: Retail Segment Financial Results
Q2 2024 Retail Segment Financial Results YTD YTD (C$ in millions, except where noted) Q2 2024 Q2 2023 Change Q2 2024 Q2 2023 Change Retail sales1 $ 5,000.2 $ 5,214.9 (4.1) % $ 8,257.7 $ 8,541.4 (3.3) % Revenue $ 3,754.8 $ 3,896.1 (3.6) % $ 6,891.4 $ 7,234.0 (4.7) % Gross margin dollars $ 1,208.8 $ 1
Slide 16: Selected Normalized Metrics: Retail
Q2 2024 Selected Normalized Metrics: Retail (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q2 2024 Items1 Q2 20242 Q2 2023 Items 1 Q2 20232 Change3 Revenue $ 3,754.8 $ — $ 3,754.8 $ 3,896.1 $ — $ 3,896.1 (3.6) % Cost of producing revenue 2,546.0 — 2,546.0 2,645.2
Slide 17: Financial Services Results
Q2 2024 Financial Services Results YTD YTD (C$ in millions) Q2 2024 Q2 2023 Change Q2 2024 Q2 2023 Change Revenue $ 383.2 $ 364.5 5.1 % $ 772.2 $ 734.3 5.2 % Gross margin dollars $ 178.9 $ 179.5 (0.3) % $ 368.8 $ 390.8 (5.6) % Gross margin rate1 46.7 % 49.2 % (253) bps 47.8 % 53.2 % (545) bps Other
Slide 18: Selected Normalized Metrics: Financial Services
Q2 2024 Selected Normalized Metrics: Financial Services (C$ in millions, except where Normalizing Normalized Normalizing Normalized noted) Q2 2024 Items1 Q2 20242 Q2 2023 Items1 Q2 20232 Change3 Revenue $ 383.2 $ — $ 383.2 $ 364.5 $ — $ 364.5 5.1 % Gross margin dollars 178.9 — 178.9 179.5 — 179.5 (0
Slide 19: Segment Eliminations
Q2 2024 SEGMENT ELIMINATIONS SECOND QUARTER 2024 | SEGMENT ELIMINATIONS 19
Slide 20: Segment Reporting Note Disclosure
Q2 2024 Segment Reporting Note Disclosure SECOND QUARTER 2024 | SEGMENT ELIMINATIONS 20 1 CT REIT revenue is comprised of $108.7 million of base rent and $35.8 million in expense and capital recoveries and other revenue. The property revenue attributable to CTC is $128.8 million. 2 This measure is a
Slide 21: YTD Segment Reporting Note Disclosure
Q2 2024 YTD Segment Reporting Note Disclosure SECOND QUARTER 2024 | SEGMENT ELIMINATIONS 21 1 CT REIT revenue is comprised of $216.8 million of base rent and $71.9 million in expense and capital recoveries and other revenue. The property revenue attributable to CTC is $257.7 million. 2 This measure
Slide 22: Thank You
Thank You For more information: http://investors.canadiantire.ca 22