UPDATE 1-Canadian Tire profit rises on higher homeware, sports gear sales

Thu Aug 7, 2014 10:14am EDT
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Aug 7 (Reuters) - Retailer Canadian Tire Corp reported a higher quarterly profit, helped by increased sales of homeware and sports gear as customers carried out repairs around the house and readied to spend time outdoors after a prolonged winter.

Canadian Tire also said President Michael Medline, who had been with the company for 13 years, would take on the additional role of chief executive from Dec. 1, replacing Stephen Wetmore.

Canadian Tire sells sports apparel, footwear and equipment under the FGL Sports brand, and casual and work clothing under the Mark's brand. It also sells car accessories and outdoor tools.

Same-store sales rose 8.2 percent in FGL Sports in the second quarter, driven by a 10.8 percent rise in same-store sales in its core brand, Sport Chek, under which it sells golf and hockey kits.

Same-store sales at Mark's rose 3.2 percent, helped by strong sales of industrial and men's clothing and footwear.

Canadian Tire said revenue in its financial services business, under which it offers credit cards and insurance and retail deposit products, rose 5.3 percent in the quarter.

Medline had led the sale of a 20 percent stake in the business to Bank of Nova Scotia in May.

Wetmore will take over as the deputy chairman of the company, Canadian Tire said on Thursday.   Continued...