Canadian Tire shares slide as Q2 profit falls, revenue below analyst estimates

Canadian Tire Corp.’s second-quarter profit was down compared with last year and and its revenue growth came in below analyst estimates.

In morning trading on the Toronto Stock Exchange, the Class A non-voting shares of Canadian Tire were down by 7.5 per cent to $168.74.

The Toronto-based retailer and financial services company reports it had $156 million of net income attributable to shareholders, or $2.38 per share, down from $195.2 million or $2.81 per share a year earlier.

Its adjusted net income was $170.6 million or $2.61 per share, down from $195.2 million or $2.81 per share.

Analysts had estimated $3.04 of adjusted net income and $3.06 of net income, according to Thomson Reuters Eikon.

Revenue was also below estimates at $3.48 billion for the three months ended June 30, up 3.2 per cent from $3.37 billion in last year’s second quarter. Analysts had estimated $3.56 billion of revenue.

The company — which operates under various retail banners including Canadian Tire, Mark’s and Sport Chek — says the quarter’s sales got off to a slow start in April because of unseasonably cold weather but picked up in May and June.

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