Canadian Tire reports drop in profit and revenue, withdraws forecasts for the year
has withdrawn a previous three-year forecast for its financial performance, as inflation has dampened consumer spending and put pressure on retail sales – marking what its chief executive officer called “a turning point in the Canadian economy.”
For months, Canadian Tire has been among the retailers pointing to changing consumer patterns, as higher interest rates and soaring prices for everyday essentials such as groceries have led people to cut back on non-essential purchases. In the first quarter, the company’s credit card data showed that overall consumer spending had slowed for the first time since 2020, to roughly the same level as the same period the previous year.
“I think the objective of quantitative tightening is being delivered upon,” Mr. Hicks said. “I can’t speak whether it’s too much, but we can certainly tell you that across our portfolio of discretionary categories, especially in Ontario and B.C., the policy is having its intended effect.” Last year, the company provided a forecast that it would achieve 4-per-cent average annual sales growth on a comparable consolidated basis by 2025. The forecast also set a target to more than double its diluted earnings per share from 2019 to 2025, to reach more than $26 per share. Canadian Tire has now withdrawn those forecasts.
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