The Canadian Tire Corporation has announced an outstanding performance in 2020. While others struggled due to the forced closure of their businesses – Canadian Tire Corporations stores faired a bit better. This isn’t a knock on the CTC -I’m more so pointing out that our government’s policies directly contributed to some companies and people benefiting while others have been forced to suffer.
The Canadian Tire Corporation which includes Marks Work Warehouse, SportsCheck and Canadian Tire has seen an explosion in retail sales and online e-commerce sales in 2020. Retails sales when excluding petroleum were up 11% for the CTC – mainly driven by the retail sales of Canadian Tire growing by 17.6%.
E-Commerce sales reached $1.6 billion, up $1 billion or 183%, with Canadian Tire retail e-commerce growing by 250%. As people were forced to stay at home due to government lockdown policies or elected to stay home out of fear – e-commerce sales exploded. This isn’t exactly surprising but the amount of growth it experienced is. To receive 250% growth in one year signals an astronomical amount of new business happening online in 2020.
Here’s a look at their full year in review
- Retail segment revenue increased by $410.2 million, or 3.1%. When Excluding Petroleum, Retail segment revenue was up 8.4%
- CTR (Canadian Tire Retail) sales increased 17.6%
- SportChek’s retail sales decreased 8.5%
- Mark’s retail sales decreased 5.5%
- Helly Hansen’s revenue was $541.9 million, down 2.2%. On a constant currency basis, Helly Hansen revenue grew 2.0%
- Income before income taxes increased $90.5 million or 14%. Normalized income before income taxes increased by $108.1 million or 15.7%
- Refer to the Q4 and Full Year 2020 MD&A section 5.1.1 for information on normalizing items, and to the Q4 and Full Year MD&A section 4.0 for additional details on events that have impacted the Company in 2020
So in what has been an extremely rough year for many as a result of the government’s Covid policies and lockdowns – Canadian Tire Corporation has experienced their income before income taxes increase by $90.5 million or 14% in 2020. Just remember, everyone is being affected by Covid-19 – but not everyone is being affected negatively.
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