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TORONTO, Oct 9 (Reuters) - Canadian Tire Corp Ltd will target average earnings per share growth of 8-10 percent between 2015 and 2017 under an "aggressive plan to compete", the retailer said on Thursday.
The Toronto-based company said it is also aiming for annualized sales growth of 3 percent at its Canadian Tire automotive and hardware stores, 5 percent for Mark's Work Warehouse, which sell casual and work clothing, and 9 percent at its FGL Sports unit, whose core brand Sport Chek sells sport clothes and equipment.
Canadian Tire also said it plans to buy back an additional C$400 million in class A voting shares through to the end of 2015 and will maintain its dividend policy, paying out 25-30 percent of the prior year's normalized earnings.
The company seeks a 9 percent return on invested capital by the end of 2017 and a 6 percent return on receivables growth in its financial services business. It expects an average annual capital investment of C$575 million ($517.97 million) under the three-year plan.
Under the plan, it will also evaluate acquisitions to grow its core categories, considering companies with a strong financial outlook and brand and growth potential.
1 US dollar = 1.1101 Canadian dollar Reporting by Susan Taylor; Editing by Alden Bentley