The Globe and Mail reports in its Friday edition that Canadian Tire posted a strong second quarter
profit. The Globe's Marina Strauss writes that
quarterly sales at stores open a
year or more rose 1.8 per cent in
the second quarter.
At FGL Sports, its sporting
division that includes its flagship
Sport Chek chain, sales increased
3.7 per cent in the
quarter, which is below the
retailer's annual 9-per-cent goal.
FGL's same-store sales rose 2.6
per cent and 1.1 per cent at
Sport Chek.
Canadian Tire said, "In light of the recent sales
results at FGL Sports, it is unlikely
that their annual sales
growth aspiration will be realized
in 2017." Canadian Tire
has shown resilience in the face
of inclement weather although
its once fast-growing
sporting division is no longer
enjoying the gains of the past,
with analysts pointing to slowing
growth in some athletic categories
and tougher on-line
competition.
Edward Jones analyst Brittany Weissman says FGL is
probably feeling the heat of athletic
wear categories having
peaked. As well, e-commerce
competition has intensified, she
says, which could also affect
FGL's business.
Still,
FGL generated stronger sales
than many observers expected.
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