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Canadian Tire posts wider-than-expected quarterly loss as virus hits retail segment

Credit: REUTERS/CHRIS WATTIE

Canadian Tire Corp Ltd posted a wider-than-expected quarterly loss on Thursday, as coronavirus-led closures at its Mark's, Sport Chek and Helly Hensen stores hit its retail segment.

Adds segment details, compares with estimates

Aug 6 (Reuters) - Canadian Tire Corp Ltd CTCa.TO posted a wider-than-expected quarterly loss on Thursday, as coronavirus-led closures at its Mark's, Sport Chek and Helly Hensen stores hit its retail segment.

The automotive, home and sporting goods retailer closed all its 203 namesake stores in Ontario and focused heavily on its online business in the second quarter, as consumers stayed at home following government-imposed restrictions.

E-commerce, however, was a bright spot for the 98-year-old retailer during the quarter, rising 400% and helping it offset some losses at its retail segment as more consumers shopped online. The segment posted a 15.2% decline in revenue.

Lower transaction fee revenue brought on by a decline in credit-card sales also hit the company's financial services segment, whose income nearly halved.

Excluding one-time items, the company reported a loss of 25 Canadian cents per share, while analysts on average expected a loss of 10 Canadian cents, according to IBES data from Refinitiv.

Revenue fell 14.2% to C$3.16 billion, above Street estimates of C$2.95 billion.

($1 = 1.3270 Canadian dollars)

(Reporting by Mehr Bedi and Praveen Paramasivam in Bengaluru; editing by Uttaresh.V)

((Mehr.Bedi@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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