The Successful Investor Hotline – Friday, August 9, 2013

Article Excerpt

CANADIAN TIRE CORP., $89.56, Toronto symbol CTC.A, rose 6% this week after the company reported better-than-expected earnings. In the three months ended June 29, 2013, Canadian Tire’s earnings rose 15.9%, to $154.9 million from $133.7 million a year earlier. Earnings per share rose 17.2%, to $1.91 from $1.63, on fewer shares outstanding. That easily beat the consensus estimate of $1.80 a share. Sales rose 1.0%, to $3.02 billion from $2.99 billion. Same-store sales gained 2.0% at the company’s 490 Canadian Tire stores, thanks to strong sales of automotive and kitchen goods. Higher demand for seasonal merchandise, like bicycles and patio furniture, also contributed to the higher results. Same-store sales rose 7.2% at the company’s 413 sporting goods stores, including Sport Chek and Sports Experts. Same-store sales at its 385 Mark’s casual-clothing stores gained 6.4% on higher demand for women’s apparel. Canadian Tire also announced that it is looking for a partner to manage its $4.4-billion credit card portfolio. That would free up cash for…