Retailer Canadian Tire's profit beats, shares rise

(Reuters) - Canadian Tire Corp Ltd CTCa.TO reported a better-than-expected fourth-quarter profit on Thursday as promotions in the holiday period and an early winter in some parts of the country drove demand across its retail businesses.

Shares of the retailer rose as much as 6.9 percent to C$174.98 on the Toronto Stock Exchange.

Same-store sales at FGL Sports, which the company touts as its destination banner for millennials, rose 5.8 percent in the reported quarter, helped by promotional campaigns and sales during Cyber Monday and Black Friday.

BMO Capital Markets analyst Peter Sklar said FGL same-store sales was significantly above his expectations of a rise of 1 percent.

The Toronto-based company said in-store promotions were instrumental in driving sales at its flagship Canadian Tire Retail, helping sell non-seasonal products like Master Chef Kitchen appliances and personal-care items.

Same-store sales at Canadian Tire Retail rose 3.5 percent, beating BMO’s estimate of 2.5 percent.

Net income attributable to the retailer rose to C$275.7 million, or C$4.10 per share, in the three months ended Dec. 30, from C$246.8 million, or C$3.46 per share, a year earlier.

For the reported quarter, analysts on average were expecting a profit of C$3.80 per share, according to Thomson Reuters I/B/E/S.

Toronto-based Canadian Tire’s revenue rose 8.9 percent to C$3.96 billion.

($1 = C$1.25)

Reporting by Nishara Karuvalli Pathikkal in Bengaluru; Editing by Shounak Dasgupta