On net income of $27.3 million for common shareholders, earned from continuing operations. This figure comes to 49 cents per diluted share. That’s a huge drop from last year’s $59.9 million, or $1.08 per diluted share, during the same quarter.
It’s no wonder that Canadian Tire’s revenue for the quarter reached $3.46 billion. This makes for an impressive climb from the $3.33 billion recorded by the company over the same timeframe last year, despite net income declining. The company’s normalized earnings per diluted share from continuing operations jumped 18%. They rocketed up to $2.00, compared to $1.08 a year earlier.
For the third quarter ended Sept. 30, Canadian Tire saw a $9.9 million net gain on disposition of discontinued operations. That is 18 cents of earnings per diluted share. This is down from last year’s $16.9 million. It further reflects a 30 cent decline in diluted share loss from discontinued operations.
Those results are all the more impressive given the current economic climate, with consumer confidence facing a rollercoaster ride. Despite these doubts from the analysts, Canadian Tire’s leadership was still positive about the resilience of their customers.
“Despite low confidence levels, customers have been and remain more resilient than we anticipated,” said Greg Hicks, President and CEO of Canadian Tire.
Hicks added that the company has “minimal economic exposure to the potential fall out. At the same time, they’ve created a contingency plan — should things go wrong — to address the remainder of the year.
“With limited exposure today, we have visibility to potential impacts and a plan for the balance of year should we need it,” Hicks added.
Canadian Tire has been killing it financially. The company further made waves with the disclosure of an interesting new cooperation agreement with WestJet that would enhance customer loyalty programs. Beginning in early 2022, any members of Canadian Tire’s Triangle Rewards and WestJet Rewards programs will be able to connect their accounts. This innovative new partnership will allow participants to earn stacked rewards—how cool is that! This strategic advance is projected to more deeply engage customers and solidify brand loyalty throughout both firms.
