Canadian Tire ‘patiently awaiting spring’ after drop in first-quarter sales

The Hillside Canadian Tire store in Victoria, B.C. Photo by James MacDonald/Bloomberg files

Article content

Canadian Tire Corp. Ltd.‘s consolidated sales were down one per cent in the first quarter, due in part to the extended winter in most of the country, the company said Thursday.

Article content

Comparable sales at Canadian Tire retail stores dropped 2.3 per cent in the quarter ended April 4, with seasonal and gardening categories leading the weather-related decline, while fixing categories grew.

Article content

Article content

Article content

“Unfortunately, the seemingly endless Q1 winter clearly delayed the warmer weather and the inevitable sales it brings,” chief executive Greg Hicks told analysts during Thursday’s earnings call. “Like our customers, we have been patiently awaiting spring.”

Article content

Article content

Hicks said the seasons also didn’t line up neatly with the company’s quarterly reporting dates.

Article content

The first week of the quarter was negatively affected by strong winter sales having been pulled into last year’s 53rd week, while sales in the final week of the first quarter were negatively affected by a delayed spring compared to strong sales last year, he said. Absent these factors, overall comparable sales would have been positive, Hicks added.

Article content

Western Canada, which had better weather than most of the country, outperformed, while seasonal weakness affected sales in Ontario and Quebec, he said.

Article content

Active wear and casual wear retailers SportChek and Mark’s had continued sales growth, up 3.3 per cent and 1.2 per cent respectively, raising retail revenue as the company “positioned the business for spring demand,” Hicks said.

Article content

Article content

Canadian Tire’s consolidated revenue grew by 3.3 per cent to $3.57 billion in the quarter. Retail revenue grew 2.9 per cent, and five per cent if excluding petroleum.

Article content

Article content

The retailer’s loyalty sales outpaced non-loyalty sales, reflecting growth in active Triangle Rewards members, including increasing contributions from partnerships launched with Royal Bank of Canada and WestJet in the quarter.

Article content

The company is also watching how consumers respond to economic volatility, said Hicks.

Article content

“Similar to our comments at the end of 2025, we see a Canadian customer that is resilient but discerning,” he said. “In the face of macroeconomic confusion, they have their chin up and their eyes wide open.”

Article content

The CEO said that even with strained budgets, customers are still shopping, but they are more selective and value driven.

Article content

Hicks said the company’s Triangle credit card data shows significant increases in household spending at the gas pump, which he said is no surprise, but has their attention.

Article content

He said that as customers search for value, the retailer has lowered prices on some products in response.