Customers head in and out of a Canadian Tire store location in Scarborough, Ont.
Canadian Tire Corp. Ltd. nearly doubled its fourth-quarter profit compared with a year ago, helped by improved margins and lower interest costs.
The retailer said Thursday it earned $181.1-million or $2.22 per diluted share for the quarter ended Jan. 1, up from $96.2-million or $1.18 per diluted share a year ago.
Revenue totalled $2.54-billion, up from $2.44-billion.
Canadian Tire same-store sales fell 0.4 per cent in the quarter, while same-store stales at Mark's grew 0.7 per cent.
"Our earnings growth was positive, particularly in a tempered consumer market, and I am pleased with our progress in managing our business," president and chief executive Stephen Wetmore said in a statement.
"We've advanced our strategic plan in 2010 and I believe we're well-positioned as we enter 2011."
Boosting the company's earnings was a $42-million income tax adjustment and $12.6-million in interest on a tax deposit. Excluding one-time items, the company said it earned $1.51 per share for the quarter.
The average analyst estimate had been for a profit of $1.54 per share, according to Thomson Reuters.
For the full year, Canadian Tire earned $453.6-million or $5.56 per share on $8.98-billion in revenue. That compared with a profit of $335-million or $4.10 per share on $8.69-billion the previous year.
The company boosted its dividend in November, when it reported its third-quarter earnings.
Canadian Tire is undergoing a major overhaul both in the company's executive suite and as a result of a decision to shift its separate units under one corporate umbrella to eliminate duplication and bloated costs.
That overhaul came just months after the company announced in April it was refocusing on its core automotive and retail businesses instead of other divisions like financial services and clothing sales at Mark's Work Warehouse.
Canadian Tire's auto sales have been hit by weaker consumer demand, more competition and a deteriorating reputation in the business that once built the brand.
It is concentrating on expanding so-called "smart stores" which aim to direct customers more easily around the stores and highlight the automotive division.
The chain has said it plans to convert another 60 stores through 2011.
Canadian Tire employs more than 58,000 people with 485 stores across the country.