Canadian Tire profit beats market estimates
(Reuters) - Retailer Canadian Tire Corp (CTCa.TO: Quote) reported a better-than-expected quarterly profit, helped by strong sales of home products and sports gear, and raised its dividend.
Consolidated retail sales rose 4.4 percent to C$3.4 billion($2.98 billion) in the third quarter. [ID:nCNWDBR6ra]
Same-store sales rose 3.2 percent at Canadian Tire stores, which sell home and automotive products, as people bought more outdoor recreation and backyard living categories in the last of summer months.
At FGL Sports, which sells an assortment of sports-related products, same-store sales rose 8.5 percent, driven by a 11.2 percent rise in sales in its largest brand, Sport Chek.
Net income attributable to Canadian Tire rose to C$172.2 million, or C$2.17 per share, in the quarter ended Sept. 27, from C$145.5 million, or C$1.79 per share, a year earlier.
Analysts on average had expected a profit of C$2.01 per share, according to Thomson Reuters I/B/E/S.
The company raised its annualized dividend to C$2.1 per share from C$2.
Canadian Tire's shares were up 2 percent at C$126.28 on the Toronto Stock Exchange on Thursday. The stock had risen nearly 25 percent this year, up to Wednesday's close.
(Reporting By Manya Venkatesh in Bangalore; Editing by Don Sebastian)
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