Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q1 2025 Earnings Presentation
24 slides from Canadian Tire's earnings presentation, May 8, 2025
Slide 1: Canadian Tire Corporation Q1 2025 Financial Results and Segment Eliminations
Canadian Tire Corporation Q1 2025 Financial Results and Segment Eliminations
Slide 2: Forward Looking Information
Forward Looking Information This document contains information that may constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information provides insights regarding Management’s current expectations and plans and allows investors and others to bett
Slide 3: Executive Participants
Executive Participants Greg Hicks President & Chief Executive Officer, Canadian Tire Corporation Darren Myers Executive Vice President & Chief Financial Officer, Canadian Tire Corporation TJ Flood Executive Vice President & Chief Operating Officer, Canadian Tire Corporation 3
Slide 4: Table of Contents
Table of Contents Slide Topic Number Q1 2025 HIGHLIGHTS 5 Q1 2024 TO 2025 REPORTED DILUTED EPS BRIDGE AND KEY IMPACTS 10 Q1 2025 FINANCIAL RESULTS 12 Q1 2025 SEGMENT ELIMINATIONS 19 NORMALIZED RESULTS FROM CONTINUING OPERATIONS 21 4
Slide 5: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS 5
Slide 6: Highlights
Q1 2025 Highlights • Consolidated comparable sales1 were up 4.7% and consolidated retail sales1 were up 5.1%. Increased trips drove sales growth across all banners, with particular strength in Ontario, Quebec and Eastern Canada. • Canadian Tire Retail (CTR) comparable sales grew 4.7%, with growth ac
Slide 7: Highlights (continued)
Q1 2025 Highlights (continued) • Consolidated income before income taxes (IBT) was down $51.3 million to $51.6 million and Diluted EPS was $0.67, including the results for Helly Hansen business (now included in discontinued operations) and expenses related to the implementation of the Company’s True
Slide 8: Strategic Highlights
Strategic Highlights • During the first quarter, CTC launched True North, its new four-year transformative growth strategy, designed to drive core retail growth through four strategic cornerstones: disciplined capital investments to build exceptional digital and store experiences; an expanded Triang
Slide 9: Strategic Highlights (Continued)
Strategic Highlights (Continued) • True North’s store enhancement program will invest in modern new store formats, expected to improve sales, margin and customer experience. Planned investments in 2025 include more than 30 Canadian Tire store projects and 18 Mark’s store projects, including seven ne
Slide 10: Q1 2024 to 2025 Reported Diluted EPS Bridge and Key Impacts
Q1 2024 to 2025 Reported Diluted EPS Bridge and Key Impacts 10
Slide 11: Q1: 2024 to 2025 Reported Diluted EPS Bridge and Key Impacts
Q1: 2024 to 2025 Reported Diluted EPS Bridge and Key Impacts Q1 2025 Reported Diluted EPS down $0.71 to $0.67 Items included in Q1 2025 Continuing Q1 2025 Normalized Diluted EPS up $0.80 to $2.18 Operations Diluted EPS: $0.18 $2.18 1 (+) The net income increase of $62.8M was driven by higher retail
Slide 12: Q1 2025 Financial Results
Q1 2025 FINANCIAL RESULTS 12
Slide 13: Q1 2025 Consolidated Financial Results
Q1 2025 (C$ in millions, except where noted) Retail sales 1 $ Q1 2025 3,423.0 $ Q1 2024 3,257.5 Change 5.1 % Consolidated Revenue Gross margin dollars $ $ 3,456.7 1,190.8 $ $ 3,332.8 1,150.6 3.7 % 3.5 % Financial Gross margin rate Other expense (income) 1 $ 34.4 % 111.9 $ 34.5 % (0.9) (7) bps NM2 Re
Slide 14: Normalizing Items
Q1 2025 Normalizing Items • In relation to the True North strategy announced in March of 2025, the Company recorded a one-time transformation charge of $95.4 million including severance and costs for optimization of the SportChek store portfolio, including closing standalone Atmosphere stores. The C
Slide 15: Selected Normalized Metrics – Consolidated
Q1 2025 Selected Normalized Metrics – Consolidated* Normalizing Normalized Q1 Normalizing Normalized (C$ in millions, except where noted) Q1 2025 Items1 20252 Q1 2024 Items1 Q1 20242 Change3 Revenue $ 3,456.7 $ —$ 3,456.7 $ 3,332.8 $ —$ 3,332.8 3.7 % Cost of producing revenue 2,265.9 — 2,265.9 2,182
Slide 16: Retail Segment Financial Results
Q1 2025 Retail Segment Financial Results* (C$ in millions, except where noted) Q1 2025 Q1 2024 Change Retail sales1 $ 3,423.0 $ 3,257.5 5.1 % Revenue $ 3,061.8 $ 2,944.5 4.0 % Gross margin dollars $ 977.8 $ 938.5 4.2 % Gross margin rate1 31.9 % 31.9 % 6 bps Other expense (income) $ 73.2 $ (37.9) NM2
Slide 17: Selected Normalized Metrics: Retail
Q1 2025 Selected Normalized Metrics: Retail* Normalizing Normalized Normalizing Normalized (C$ in millions, except where noted) Q1 2025 Items1 Q1 20252 Q1 2024 Items1 Q1 20242 Change3 Revenue $ 3,061.8 $ — $ 3,061.8 $ 2,944.5 $ — $ 2,944.5 4.0 % Cost of producing revenue 2,084.0 — 2,084.0 2,006.0 —
Slide 18: Financial Services Results
Q1 2025 Financial Services Results (C$ in millions) Q1 2025 Q1 2024 Change Revenue $ 395.6 $ 389.0 1.7 % Gross margin dollars $ 191.7 $ 189.9 1.0 % Gross margin rate1 48.5 % 48.8 % (35) bps Other expense (income) $ 1.2 $ 0.5 140.3 % Selling, general and administrative expenses 94.7 96.6 (1.9) % Depr
Slide 19: Segment Eliminations
Q1 2025 SEGMENT ELIMINATIONS 19
Slide 20: Segment Reporting Note Disclosure
Q1 2025 Segment Reporting Note Disclosure* *Retail segment performance from continuing operations excluding the Helly Hansen business. 1 The CT REIT eliminations and adjustments include intersegment eliminations between Retail and CT REIT including intercompany rent and property management fees and
Slide 21: Normalized Results from Continuing Operations
Normalized Results from Continuing Operations 21
Slide 22: Consolidated Normalized Results from Continuing Operations
Consolidated Normalized Results from Continuing Operations* To assist in modelling the business on a go-forward basis further to the announced sale of Helly Hansen, the following table restates the Company’s normalized results from continuing operations on a quarterly and annual basis. Q1 2024 Q2 20
Slide 23: Retail Segment Normalized Results from Continuing Operations
Retail Segment Normalized Results from Continuing Operations* To assist in modelling the business on a go-forward basis further to the announced sale of Helly Hansen, the following table restates the Company’s normalized results from continuing operations on a quarterly and annual basis. Q1 2024 Q2
Slide 24: For more information
For more information: http://investors.canadiantire.ca