CTC posts positive fourth quarter and full-year results

Canadian Tire says unseasonable weather at the end of 2011 hurt sales of automotive tires and light automotive parts.

But while automotive sales were down slightly in Q4 2011, the category still recorded positive growth for the full year.

It was one of the factors that led Canadian Tire Corporation to report positive results for the fourth quarter and full year 2011.

Consolidated revenues totaled $3.1 billion in the fourth quarter of 2011, up 21.1% over the fourth quarter of 2010, reflecting the inclusion of FGL Sports and higher retail revenues across all banners. Diluted earnings per share (EPS) were $2.03 in the quarter. EPS for the same period in 2010 were $2.07, including the positive impact of a tax settlement, which amounted to approximately $0.67 per share. Normalizing for the tax settlement, EPS were up 43.1% in the fourth quarter of 2011 versus Q4 2010.

Consolidated revenues totaled $10.4 billion for full year 2011, up 12.7% versus 2010 as a result of the inclusion of FGL Sports and higher revenues across all retail banners. Diluted EPS for the full year totaled $5.71, up 5.3% versus 2010. Normalizing for the Q4 2010 tax settlement, EPS were up 17.4%.

"We’re very pleased with our results for the quarter and the year," said Stephen Wetmore, president and CEO, Canadian Tire Corp. "I think our performance was strong despite unseasonable weather in many parts of the country. As we begin 2012, our 90th anniversary, we are optimistic about the year ahead and I believe we are pursuing the right priorities across the company to better serve the needs of our customers."

Consolidated retail sales rose 21.0% in the quarter to $3.7 billion versus Q4 2010. For the year, consolidated retail sales rose 12.3% versus 2010 to $11.6 billion.

Retail sales at Canadian Tire Retail increased 2.7% in the quarter versus the same period in 2010 (2.0% for the full year in 2011). Same store sales rose 1.8% in the quarter versus the same period in 2010 (1.1% for the full year in 2011). Sales in the quarter were strong in key Living, Fixing and Playing categories, including kitchen, home organization, paint and tools.

At Mark’s, retail sales grew by 3.1% in the quarter versus the same period in 2010 (3.0% for the full year in 2011). Same store sales were up 3.1% in the quarter versus the same period in 2010 (2.8% for the full year in 2011). Sales in the quarter were driven by strong industrial wear sales. The unseasonable weather negatively impacted men’s and women’s casual wear sales and margins in the quarter and for the year.

At FGL Sports, corporate same store sales rose 3.8% in the quarter while franchise same store sales fell 5.0% in the fourth quarter compared to the previous year predominantly as a result of unseasonable weather in Quebec. Overall, same store sales at FGL Sports increased by 0.7% in the quarter versus the same period in 2010 (2.6% since being acquired in August, 2011). Retail sales increased 0.6% in the quarter versus the same period in 2010 (2.3% since being acquired in August, 2011).

Retail sales at Canadian Tire Petroleum increased by 10.3% in the quarter versus the same period in 2010 (19.0% for the full year in 2011) as a result of higher gas prices.