August 10, 2017 / 10:45 AM / 3 months ago

Retailer Canadian Tire's quarterly profit beats estimates

(Reuters) - Retailer Canadian Tire Corp Ltd (CTCa.TO) reported a quarterly profit that comfortably beat analysts’ expectations on strong demand for apparel and sports gear.

People stand in front of a large Canadian Tire Corp logo during their annual general meeting for shareholders in Toronto, May 14, 2015. REUTERS/Mark Blinch

Shares of the company, which sells everything from automotive parts to apparel, were up as much as 3.3 percent at C$146.39 on the Toronto Stock Exchange on Thursday.

The company, which operates around 1,700 retail and gasoline outlets, reported total same-store sales rose 1.8 percent in the second quarter.

Same-store sales at Canadian Tire stores, which accounted for more than half of the company’s total revenue in the quarter, rose 1.4 percent.

The segment was helped by demand for its Noma brand of electrical products and kitchen appliances under the Master Chef label.

The company said it experienced strong sales growth in June despite a slow start to the spring and summer.

Net income attributable to the company increased 8.8 percent to C$195.2 million ($153.6 million) in the quarter ended July 1.

Profit rose to C$2.81 per share, beating the average analyst estimate of C$2.52 per share, according to Thomson Reuters I/B/E/S.

The Toronto-based company’s retail sales rose 3 percent to C$4.10 billion.

Reporting by Muvija M in Bengaluru; Editing by Maju Samuel

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