Diversified retailer Canadian Tire Corp Ltd missed first-quarter profit estimates on Thursday, hurt by lower shipment of products to dealers at its namesake brand.
Revenue at its Canadian Tire’s retail unit, its biggest, fell 2.7 per cent to $1.35 billion.
Product shipments fell due to the timing of spring promotional orders and a pullback by dealers of in-store winter inventory to meet consumer demand in the latter half of the quarter, the company said.
However, consolidated same-store sales rose 6.1 per cent, helped by strong performance at its Mark’s clothing unit and contributions from the acquisition of the Helly Hansen brand.
Net finance costs more than doubled to $67 million during the quarter, offsetting lower selling and general expenses.
The Toronto-based company, which offers products ranging from automotive parts to sporting goods and also provides financial services, said net income fell 1.7 per cent to $97.4 million.
On a per share basis, the company earned $1.12 per share, but missed the average analyst estimate by 26 cents, according to IBES data from Refinitiv.
The company’s revenue rose 2.8 per cent to $2.89 billion in the quarter ended March 31.