Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q4 2024 Earnings Presentation
26 slides from Canadian Tire's earnings presentation, Feb 13, 2025
Slide 1: Canadian Tire Corporation Q4 2024 Financial Results and Segment Eliminations
Canadian Tire Corporation Q4 2024 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 bet
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 FOURTH QUARTER AND FULL YEAR 2024 | EXECUTI
Slide 4: Table of Contents
Table of Contents Topic Slide Number Q4 2024 & FY 2024 HIGHLIGHTS 5 Q4 & FY 2023 TO 2024 REPORTED DILUTED EARNINGS PER SHARE (EPS) BRIDGE AND KEY 9 IMPACTS Q4 2024 & FY 2024 FINANCIAL RESULTS 12 Q4 2024 & FY 2024 SEGMENT ELIMINATIONS 23 FOURTH QUARTER AND FULL YEAR 2024 | TABLE OF CONTENTS 4
Slide 5: Q4 2024 & FY 2024 Highlights
Q4 2024 & FY 2024 HIGHLIGHTS FOURTH QUARTER AND FULL YEAR 2024 | HIGHLIGHTS 5
Slide 6: Q4 2024 Highlights
Q4 2024 Highlights • Consolidated comparable sales1 and consolidated retail sales1 returned to growth and were both up 1.1%, driven by strong December sales across all banners; loyalty sales1 were up 4%. • Canadian Tire Retail (CTR) comparable sales1 grew 1.1%. Strong growth was led by Automotive an
Slide 7: FY 2024 Highlights
FY 2024 Highlights • Consolidated retail and comparable sales, excluding Petroleum1, were down 1.7%, reflecting a weaker consumer demand environment. At CTR, essential categories were up 1%, led by Automotive, and outpaced the 5% decline in discretionary categories. • Loyalty sales penetration1 repr
Slide 8: Strategic Highlights
Strategic Highlights • Since 2022, the Company has been executing its Better Connected strategy, modernizing core retail foundational elements by investing in the business, with total Operating Capital Expenditures1 of $1.8 billion. Over that time, the Company has also returned $1.9 billion to share
Slide 9: Q4 and Full Year 2023 to 2024 Reported Diluted EPS Bridge and Key Impacts
Q4 and Full Year 2023 to 2024 Reported Diluted EPS Bridge and Key Impacts FOURTH QUARTER AND FULL YEAR 2024 | EPS BRIDGE 9
Slide 10: Q4: 2023 to 2024 Reported Diluted EPS Bridge and Key Impacts
Q4: 2023 to 2024 Reported Diluted EPS Bridge and Key Impacts Q4 2024 Reported Diluted EPS up $4.28 to $7.37 Q4 2023 Normalizing items: Q4 2024 Normalized Diluted EPS1 up $0.69 to $4.07 1 (+) Charge related to headcount reduction: $21.6M (equivalent to Diluted EPS of $0.29) $3.30 $7.37 Items included
Slide 11: Full Year: 2023 to 2024 Reported Diluted EPS Bridge and Key Impacts
Full Year: 2023 to 2024 Reported Diluted EPS Bridge and Key Impacts Full Year 2024 Reported Diluted EPS up $12.14 to $15.92 FY 2023 Normalizing items: Full Year 2024 Normalized Diluted EPS up $2.25 to $12.62 1 (+) Change in fair value of redeemable financial instrument: $328.0M (equivalent to $3.30
Slide 12: Q4 2024 & FY 2024 Financial Results
Q4 2024 & FY 2024 FINANCIAL RESULTS FOURTH QUARTER AND FULL YEAR 2024 | CONSOLIDATED RESULTS 12
Slide 13: Q4 2024 & FY 2024 Consolidated Financial Results
Q4 2024 & FY 2024 Consolidated Financial Results (C$ in millions, except where noted) Q4 2024 Q4 2023 Change 2024 2023 Change Retail sales1 $ 5,380.5 $ 5,323.4 1.1 % $ 18,177.7 $ 18,504.1 (1.8) % Revenue $ 4,507.3 $ 4,443.0 1.5 % $ 16,357.8 $ 16,656.5 (1.8) % Gross margin dollars $ 1,529.6 $ 1,536.8
Slide 14: Q4 2024 & FY 2024 Normalizing Items
Q4 2024 & FY 2024 Normalizing Items • In the fourth quarter of 2024, the Company sold a property in Brampton, Ontario (the Brampton DC), which was no longer necessary for CTC’s distribution centre requirements as a result of strategic supply chain investments and consolidation in recent years. The t
Slide 15: Q4 2024 Selected Normalized Metrics – Consolidated
Q4 2024 Selected Normalized Metrics – Consolidated (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q4 2024 Items1 Q4 20242 Q4 2023 Items1 Q4 20232 Change3 Revenue $ 4,507.3 $ — $ 4,507.3 $ 4,443.0 $ — $ 4,443.0 1.5 % Cost of producing revenue 2,977.7 (18.1) 2,959.6
Slide 16: FY 2024 Selected Normalized Metrics – Consolidated
FY 2024 Selected Normalized Metrics – Consolidated (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) 2024 Items1 20242 2023 Items1 20232 Change3 Revenue $ 16,357.8 $ — $ 16,357.8 $ 16,656.5 $ — $ 16,656.5 (1.8) % Cost of producing revenue 10,739.1 (18.1) 10,721.0 10,
Slide 17: Q4 2024 & FY 2024 Retail Segment Financial Results
Q4 2024 & FY 2024 Retail Segment Financial Results (C$ in millions, except where noted) Q4 2024 Q4 2023 Change 2024 2023 Change Retail sales1 $ 5,380.5 $ 5,323.4 1.1 % $ 18,177.7 $ 18,504.1 (1.8) % Revenue $ 4,123.2 $ 4,070.0 1.3 % $ 14,812.4 $ 15,171.3 (2.4) % Gross margin dollars $ 1,336.8 $ 1,338
Slide 18: Q4 2024 Selected Normalized Metrics: Retail
Q4 2024 Selected Normalized Metrics: Retail (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q4 2024 Items1 Q4 20242 Q4 2023 Items 1 Q4 20232 Change3 Revenue $ 4,123.2 $ — $ 4,123.2 $ 4,070.0 $ — $ 4,070.0 1.3 % Cost of producing revenue 2,786.4 (18.1) 2,768.3 2,731
Slide 19: FY 2024 Selected Normalized Metrics: Retail
FY 2024 Selected Normalized Metrics: Retail (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) 2024 Items1 20242 2023 Items1 20232 Change3 Revenue $ 14,812.4 $ — $ 14,812.4 $ 15,171.3 $ — $ 15,171.3 (2.4) % Cost of producing revenue 10,013.9 (18.1) 9,995.8 10,324.6 —
Slide 20: Q4 2024 & FY Financial Services Results
Q4 2024 & FY Financial Services Results (C$ in millions) Q4 2024 Q4 2023 Change 2024 2023 Change Revenue $ 388.9 $ 379.9 2.4 % $ 1,560.2 $ 1,507.3 3.5 % Gross margin dollars $ 175.4 $ 181.7 (3.5) % $ 741.9 $ 783.4 (5.3) % Gross margin rate1 45.1 % 47.8 % (275) bps 47.5 % 52.0 % (443) bps Other expen
Slide 21: Q4 2024 Selected Normalized Metrics: Financial Services
Q4 2024 Selected Normalized Metrics: Financial Services (C$ in millions, except where Normalizing Normalized Normalizing Normalized noted) Q4 2024 Items1 Q4 20242 Q4 2023 Items1 Q4 20232 Change3 Revenue $ 388.9 $ — $ 388.9 $ 379.9 $ — $ 379.9 2.4 % Gross margin dollars 175.4 — 175.4 181.7 — 181.7 (3
Slide 22: FY 2024 Selected Normalized Metrics: Financial Services
FY 2024 Selected Normalized Metrics: Financial Services (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) 2024 Items1 20242 2023 Items1 20232 Change3 Revenue $ 1,560.2 $ — $ 1,560.2 $ 1,507.3 $ — $ 1,507.3 3.5 % Gross margin dollars 741.9 — 741.9 783.4 — 783.4 (5.3)%
Slide 23: Q4 2024 & FY 2024 Segment Eliminations
Q4 2024 & FY 2024 SEGMENT ELIMINATIONS FOURTH QUARTER AND FULL YEAR 2024 | SEGMENT ELIMINATIONS 23
Slide 24: Q4 2024 Segment Reporting Note Disclosure
Q4 2024 Segment Reporting Note Disclosure FOURTH 1 QUARTER AND FULL YEAR 2024 | SEGMENT ELIMINATIONS 24 The CT REIT eliminations and adjustments include intersegment eliminations between Retail and CT REIT including intercompany rent and property management fees and the adjustments for the conversio
Slide 25: FY 2024 Segment Reporting Note Disclosure
FY 2024 Segment Reporting Note Disclosure FOURTH 1 QUARTER AND FULL YEAR 2024 | SEGMENT ELIMINATIONS 25 The CT REIT eliminations and adjustments include intersegment eliminations between Retail and CT REIT including intercompany rent and property management fees and the adjustments for the conversio
Slide 26: Thank You
Thank You For more information: http://investors.canadiantire.ca 26