Topic: How To Invest

The Successful Investor Hotline – Friday, February 16, 2024

Article Excerpt

CANADIAN TIRE CORP., $140.01, Toronto symbol CTC.A, is a buy. Investors benefit from the company’s 502 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most of the locations. The company’s other operations also enrich its outlook. They include 161 stores operating under the PartSource (auto parts) and Party City (party supplies) banners. Canadian Tire has several other major retail chains: Mark’s sells casual and work clothing through 380 stores; and the Sport Chek Group sells sporting goods and athletic wear through 371 outlets, including Sport Chek and Sports Experts. The company reported lower-than-expected quarterly earnings this week. That’s partly due to warmer-than-usual winter weather, which hurt demand for seasonal goods such as snow shovels and boots. Canadian Tire’s revenue in the quarter ended December 30, 2023, fell 16.8%, to $4.44 billion from $5.34 billion a year earlier. That missed the consensus forecast of $4.99 billion. Overall same-store sales declined 6.8%. At the main Canadian Tire chain, same-store sales…