Canadian Tire earnings miss as e-commerce costs weigh and sales drop

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The 97-year-old company has been forced to invest heavily in its online business to compete

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.

Revenue at the company’s retail segment fell marginally to $3.3 billion, while analysts on average were expecting it to be $3.43 billion, according to IBES data from Refinitiv.Total revenue rose marginally to $3.64 billion, but missed estimates of $3.73 billion, according to IBES data from Refinitiv.

 

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Canadian Tire your grandpa's store Like Tim Hortons they have stayed in the past and failed to modernized there thinking kinda like most things Canadian

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Canadian Tire earnings miss estimates as e-commerce costs weighTotal revenue rose marginally to $3.64-billion, but missed estimates of $3.73 billion
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Canadian Tire earnings miss estimates as e-commerce costs weighTotal revenue rose marginally to $3.64-billion, but missed estimates of $3.73 billion
Source: globeandmail - 🏆 5. / 92 Read more »