Canadian Tire saw a 20% decline in its Q3 profit as it reeled from increased costs and slower demand.
The company is dealing with the same problems as its peers south of the country’s border, where consumers are cutting back on discretionary purchases in response to high inflation rates that have increased everyday items’ prices.
The Canadian retailer’s quarterly net income totaled $165.83 million for the quarter, lower than the $210 million it had reported during the same period a year earlier. That being said, the company saw its revenue rise by 8.1% to $3.12 billion, which was close to analysts’ expectations of $3.18 billion.
“In the third quarter, we effectively engaged our loyalty customers, resulting in increased spending per Triangle Member, with total loyalty sales outpacing non-member sales – a trend we expect to continue,” said Greg Hicks, president and CEO of Canadian Tire Corporation.
Canadian Tire is Canada’s largest sporting goods retailer. The company currently operates 1,700 physical stores.