SportChek Fuels Canadian Tire’s Q3 Growth With 4.2% Comparable Sales Gain

SportChek delivers another quarter of strong performance driven by apparel and equipment demand

Canadian Tire Corp. (CTC) reported another strong quarter for its SportChek division, as same-store sales grew 4.2 percent in the third quarter.

The performance marked the fifth consecutive quarter of comparable sales growth, driven by solid results across back-to-school and back-to-hockey categories.

SportChek Leads the Charge

SportChek’s growth was fueled by strong demand in athletic apparel, footwear, and seasonal hard goods, including golf and hockey equipment.

Retail sales for the SportChek segment rose 3.2 percent year-over-year, further enhancing its momentum across major banners such as SportChek, Hockey Experts, Sports Experts, Atmosphere, and Pro Hockey Life.

This consistent growth underscores SportChek’s role as a major driver of CTC’s retail portfolio, building a balanced mix of performance and lifestyle products across Canada.

Canadian Tire Consolidated Results

Overall, Canadian Tire Corp.’s consolidated comparable sales increased 1.8 percent in the third quarter, supported by the performance of SportChek and continued strength in Ontario and Quebec at Canadian Tire Retail (CTR).

CTR comparable sales were up 1.2 percent, reflecting regional growth. Ontario and Quebec benefited from strong consumer activity, while Alberta experienced more moderate performance.

Four of CTR’s five categories expanded during the quarter, and the automotive division achieved its 21st consecutive quarter of growth.

Discretionary sales growth outpaced essential sales for the first time since 2021, signaling a positive consumer shift toward lifestyle and leisure spending.

Mark’s Delivers Solid Gains

Mark’s, the apparel banner of Canadian Tire Corp., also delivered healthy results, with comparable sales rising 2.5 percent.

The brand benefited from early demand for fall seasonal products, particularly in workwear and jeans.

Momentum at the new Bigger Bolder Better (BBB) concept stores continued to strengthen, reinforcing the company’s store modernization efforts.

Margin Expansion and Earnings Performance

CTR Dealer restocking of fall and winter inventory, along with growth in other banners, contributed to strong retail revenue and margin performance. Excluding petroleum, retail revenue grew 5.9 percent, while the retail gross margin rate rose 57 basis points to 35.8 percent.

Normalized diluted earnings per share (EPS) climbed 6.5 percent to C$3.78, adjusted for expenses related to the company’s True North transformation program.

Normalized income before taxes (IBT) remained stable at C$297.7 million, compared to C$296.7 million in the same quarter last year. Favorable retail IBT helped offset a drop in financial services income, reflecting Canadian Tire’s ongoing business investments.

Reported diluted EPS stood at C$3.13, down C$0.42 or 11.8 percent, due to transformation-related costs associated with the True North initiative.

To learn more about the Q3 results, visit https://lnkd.in/gwYmRC3M.

CEO Highlights Strategic Momentum

Greg Hicks, President and CEO, Canadian Tire Corporation, commented on the company’s progress, stating, “In a continued dynamic consumer environment, we grew retail sales for a third consecutive quarter. At the same time, we completed a transformative reorganization, a key building block to better operating efficiency and value creation under our True North strategy. Our confidence is reflected in our continued strategic investments, our dividend increase, and our share repurchase program.”

Expansion of Loyalty Ecosystem

Hicks also underscored the success of the company’s loyalty program, adding, “Our Triangle Rewards program has real momentum and is contributing to loyalty sales growth. We announced a new Tim Hortons partnership in Q3, with new Royal Bank of Canada and WestJet programs on track to launch in 2026. Partnering with leading Canadian programs will accelerate our brand scale, our data insights, and sales.”

Looking Ahead

As Canadian Tire continues to execute on its True North strategy, the combination of steady retail performance, strategic alliances, and investments in efficiency positions the company for long-term growth in an evolving retail landscape.