Canadian Tire profit misses estimates as e-commerce costs weigh - The Globe and Mail

Retailer Canadian Tire Corp Ltd missed third-quarter profit estimates on Thursday, hurt by higher e-commerce-related transportation costs and a drop in retail sales.

Competition from U.S. e-commerce giants Walmart and Amazon.com has hurt Canadian Tire’s brick-and-mortar sales and forced the 97-year-old company to invest heavily in its online business and provide faster delivery.

However, higher freight costs related to its SportsChek e-commerce business hurt net income, which fell to $227.7-million, or $3.20 per share in the third quarter ended Sept. 28, from $231.3-million, or $3.15 per share, a year earlier.

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Revenue at the company’s retail segment fell marginally to US$3.3 billion, while analysts on average were expecting it to be US$3.43 billion, according to IBES data from Refinitiv.

Excluding items, Canadian Tire earned $3.46 per share, missing estimates of $3.47.

Total revenue rose marginally to $3.64 billion (US$2.77 billion), but missed estimates of $3.73 billion, according to IBES data from Refinitiv.

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November 07, 2019 at 06:20PM