Canadian Tire Corporation, Limited announced Thursday financial results for its third quarter ended September 27, 2025, indicating strong retail revenue growth
The retailer said consolidated comparable sales were up 1.8%, with growth across banners; retail revenue growth remained strong, up 3.2% and up 5.9% excluding petroleum; Normalized Diluted Earnings Per Share was up 6.5% to $3.78 on a continuing operations basis, while Diluted Earnings Per Share (EPS) was $3.13, down 11.8%; and Annualized dividend increased from $7.10 to $7.20 per share, alongside an intention to repurchase up to $400.0 million of Class A Non-Voting Shares by the end of 2026.
“In a continued dynamic consumer environment, we grew retail sales for a third consecutive quarter,” said Greg Hicks, President and CEO, Canadian Tire Corporation. “At the same time, we completed a transformative reorganization, a key building block to better operating efficiency and value creation under our True North strategy. Our confidence is reflected in our continued strategic investments, our dividend increase and our share repurchase program.
“Our Triangle Rewards program has real momentum and is contributing to loyalty sales growth. We announced a new Tim Hortons partnership in Q3, with new Royal Bank of Canada and WestJet programs on track to launch in 2026. Partnering with leading Canadian programs will accelerate our brand scale, our data insights, and sales — while rewarding loyalty in more parts of our customers’ daily lives.”
THIRD-QUARTER CONTINUING OPERATIONS HIGHLIGHTS
- Consolidated comparable sales were up 1.8%, led by continued strong performance at SportChek and strong performance in Ontario and Quebec at Canadian Tire Retail (CTR).
- CTR comparable sales were up 1.2%, as stronger growth in Ontario and Quebec was partially offset by Alberta. Four of CTR’s five divisions grew, and Automotive was up for the 21st consecutive quarter. Discretionary sales growth outpaced essential sales for the first time since 2021.
- SportChek delivered its fifth consecutive quarter of comparable sales growth, up 4.2% against strong comparable growth in the prior year, helped by back-to-school and back-to-hockey sales. Areas of growth included athletic clothing and footwear as well as leisure footwear and hard goods like golf and hockey.
- Mark’s comparable sales were up 2.5%, with strength in workwear and jeans on earlier demand for fall seasonal products. Growth at new-concept Bigger Bolder Better (BBB) stores remained strong.
- Loyalty sales outpaced non-loyalty sales, with loyalty members up in the quarter.
- CTR Dealer restocking of non-seasonal and fall/winter categories, along with strong sales across other banners, drove strong growth in Retail Revenue and retail gross margin. Excluding Petroleum, Retail Revenue was up 5.9%; Retail gross margin rate was 35.8%, up 57 bps.
- Normalized for the True North expenses, Diluted EPS was up 6.5% to $3.78. Normalized IBTÂ was broadly stable at $297.7 million, compared to $296.7 million in the same quarter last year. Favourable normalized retail IBT offset a decline in Financial Services income before income taxes (IBT), primarily reflecting previously communicated investments in the business.
- Diluted EPS was $3.13, down $0.42 or 11.8%, mainly due to expenses related to the Company’s True North transformation.
The company said its True North transformative growth strategy, launched in Q1 2025, is designed to drive core retail growth through four strategic cornerstones: disciplined capital investments in digital and store experiences; an expanded Triangle Rewards loyalty system; more personalized and data-driven customer relationships; and a more agile, tech-driven and efficient operating company.
The transformation is underway, with progress on a number of fronts, it explained.
“CTC began operating under its newly implemented operating structure at the end of Q3 2025, following the completion of its anticipated restructuring, with a first full quarter of savings from the restructuring expected in Q4 2025. The Company announced a further expansion to its Triangle Rewards partnerships, with Tim Hortons becoming the fourth marquee Canadian brand to partner with CTC. Previously announced partnerships with RBC and WestJet are expected to be in market in Q1 and Q2 of 2026, respectively. The Company’s existing loyalty partnership with Petro-Canada added close to 70,000 linked members in Q3, reaching a total of 518,000,” said Canadian Tire.
“The Company is on track to complete 54 store enhancement projects in 2025, enhancing omni-channel capabilities and adding 0.3 million square feet to the network. During Q3, store project completions included Mark’s BBB stores in Laurier, Quebec, Vaughan, Ontario, and Cross Iron Mills, Alberta, and SportChek Destination Sport stores in Windsor, Ontario, and in Richmond, British Columbia. A new replacement CTR store opened in Kelowna, British Columbia, in early Q4.”
Canadian Tire Corporation, Limited’s banners include Canadian Tire; Party City and PartSource; Mark’s; SportChek, Hockey Experts, Sports Experts, Atmosphere; and Pro Hockey Life across nearly 1,700 retail and gasoline outlets.
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