Canadian Tire (CTC) Q4 2023 earnings summary

Executive summary

• FY 2023 consolidated comparable sales fell 2.9%; Q4 comparable sales fell 6.8%, reflecting softer consumer demand and unseasonable weather.

• Q4 normalized diluted EPS was $3.38 versus $9.34 YoY; reported diluted EPS was $3.09.

Financial highlights

• FY revenue was $16.66B, down 6.5%; net income was $339.1M versus $1.18B, and diluted EPS was $3.78 versus $17.60.

• Q4 revenue was $4.44B, down 16.8%; net income was $197.2M versus $562.6M, and diluted EPS was $3.09 versus $9.09.

• FY normalized diluted EPS was $6.59 versus $18.75; Q4 normalized EPS was $3.38 versus $9.34.

• FY Retail gross margin rate excluding Petroleum was 35.5% versus 35.6% in 2022.

Outlook and guidance

• Petro-Canada loyalty partnership planned to launch in March 2024, extending Triangle Rewards to more than 1,800 gas stations.

• Express Delivery expanded nationally across banners in Q4; 83% of Canadian Tire stores had received same-day orders.