* Q4 EPS C$1.18 vs C$1.24 year earlier
* Adjusted EPS C$1.28 vs forecast C$1.42
* Revenue down 5.8 percent
* Shares down 2.7 percent
(Adds details, analyst comments)
TORONTO, Feb 11 Canadian Tire Corp (CTC.TO),
(CTCa.TO) said on Thursday its quarterly earnings fell more
than 5 percent, hurt by weak consumer confidence and an
unseasonably warm start to the winter, and warned that
additional costs could bite into future results.
The country's biggest auto parts and household goods
retailer, earned C$96.2 million ($91 million), or C$1.18 a
share in its fourth quarter, down 5.2 percent from C$101.5
million, or C$1.24 a share, a year earlier.
Revenue fell 5.8 percent to C$2.44 billion.
Adjusted to exclude non-operating items, earnings were
C$104.4 million, or C$1.28 a share.
Analysts, on average, had expected earnings of C$1.42 a
share, according to Thomson Reuters I/B/E/S.
Same-store sales, a key measure of the performance of
stores open for more than a year, were down 9.4 percent from
the year-earlier period, which had an additional week.
On a comparable calendar basis, same-store sales were down
"This is a relatively weak quarter. We expected some
weakness in Canadian Tire (stores) performance, but the sales
were definitely softer than we had expected," said Candice
Williams, a retail analyst at Genuity Capital Markets in
The company's shares, which have risen 41 percent in the
past year, were off 2.7 percent at C$53.65 on the Toronto Stock
Exchange on Thursday morning.
Canadian Tire said its results were hurt by unseasonably
warm weather in the key November sales period in the populous
provinces of Ontario and Quebec, which resulted in slow sales
of everything from low-cost snow shovels to big-ticket snow
Canadian Tire also sees some additional headwinds in 2010
which could bite into its results, including a C$5 million hit
from the upcoming harmonization of federal and provincial sales
taxes in Ontario and British Columbia, and C$10 million in
costs to launch some programs at its retail stores.
It also said new credit card legislation due in 2010 would
bring a pre-tax hit of between C$8 million and C$10 million
because of the impact on interest charges, payment allocation
methodology and credit limit increase approvals. It sees
another C$8 million hit for the launch of a new chip card.
Genuity's Williams sees the retailer taking a hit of about
20 Canadian cents per share for the full year as a result of
(Reporting by Scott Anderson; editing by Rob Wilson)