(Adds details, background, shares)
Aug 7 Retailer Canadian Tire Corp
reported a higher quarterly profit, helped by increased sales of
homeware and sports gear as customers carried out repairs around
the house and readied to spend time outdoors after a prolonged
Canadian Tire also said President Michael Medline, who had
been with the company for 13 years, would take on the additional
role of chief executive from Dec. 1, replacing Stephen Wetmore.
Canadian Tire sells sports apparel, footwear and equipment
under the FGL Sports brand, and casual and work clothing under
the Mark's brand. It also sells car accessories and outdoor
Same-store sales rose 8.2 percent in FGL Sports in the
second quarter, driven by a 10.8 percent rise in same-store
sales in its core brand, Sport Chek, under which it sells golf
and hockey kits.
Same-store sales at Mark's rose 3.2 percent, helped by
strong sales of industrial and men's clothing and
Canadian Tire said revenue in its financial services
business, under which it offers credit cards and insurance and
retail deposit products, rose 5.3 percent in the quarter.
Medline had led the sale of a 20 percent stake in the
business to Bank of Nova Scotia in May.
Wetmore will take over as the deputy chairman of the
company, Canadian Tire said on Thursday.
The company said net income attributable to shareholders
rose to C$178.9 million ($163.8 million), or C$2.12 per share,
in the quarter ended June 28 from C$154.9 million, or C$1.91 per
share, a year earlier.
Revenue rose about 5 percent to C$3.17 billion.
Canadian Tire's shares closed at C$104.53 on Wednesday on
the Toronto Stock Exchange. Until Wednesday's close, the stock
had more than doubled since Wetmore took over as CEO in the
beginning of 2009.
($1 = C$1.09)
(Reporting by Sneha Banerjee in Bangalore; Editing by Joyjeet
Das and Kirti Pandey)