August 7, 2014 / 12:17 PM / 4 years ago

Canadian Tire profit rises on higher homeware, sports gear sales

(Reuters) - Retailer Canadian Tire Corp (CTCa.TO) 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.

Customers enter a Canadian Tire store in Toronto March 5, 2009 . REUTERS/ Mike Cassese

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 (BNS.TO) in May.

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

The company said net income attributable to shareholders rose to C$178.9 million ($163.8 million), or C$2.12 per share, in the quarter ended June 28 from C$154.9 million, or C$1.91 per share, a year earlier.

Revenue rose about 5 percent to C$3.17 billion.

Canadian Tire’s shares closed at C$104.53 on Wednesday on the Toronto Stock Exchange. Until Wednesday’s close, the stock had more than doubled since Wetmore took over as CEO in the beginning of 2009.

Reporting by Sneha Banerjee in Bangalore; Editing by Joyjeet Das and Kirti Pandey

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