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Canadian Tire says late spring couldn't stop sales growth, improved Q2 profits

August 7, 2014

The Canadian Press

TORONTO - Canadian Tire Corp. (TSX:CTC.A) says a late start to spring couldn't hold back sales growth in the second quarter.

The company, which also owns Sport Chek and clothing retailer Mark's, reported that net income increased to $178.9 million, or $2.12 per share during the three-month period.

That compared to $154.9 million or $1.91 in the comparable quarter a year earlier.

Revenue increased to $3.17 billion from $3.02 billion helped by sales at FGL Sports, the subsidiary that operates the Sport Chek and recently-acquired Pro Hockey Life stores.

Same-store sales at Sport Chek increased 10.8 per cent, while the same key measurement of retail performance at Mark's stores was up 3.2 per cent.

Canadian Tire saw same-store sales growth of 2.8 per cent.

"Performance at Canadian Tire was strong across all categories, particularly given the late arrival of spring weather," said chief executive Stephen Wetmore in a release.

"FGL Sports' core banner, Sport Chek, continued to post impressive results in a very competitive retail landscape and had its third consecutive quarter of double-digit same store sales growth."

Canadian Tire has over 1,700 retail and gasoline outlets across the country, including various banners under FGL Sports, such as Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere.

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Source: Canadian Press DataFile

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