Ebene News – CA – Canadian Tire closes all National Sports stores despite higher than expected revenues

TORONTO – Canadian Tire Corporation Ltd says it is closing all of its National Sports stores to reduce overlap in the company’s sporting goods assortment after internal review

All 18 retail stores in southern Ontario will close, said Gregory Craig, the retailer’s chief financial officer on Thursday

“It was a difficult decision, especially given its impact on people,” he said on a conference call. “We are doing everything we can to place the employees concerned within our family of companies”

The company, which operates multiple retailers including Canadian Tire, Mark’s, SportChek, Atmosphere, Sports Experts and Pro Hockey Life, announced that its fourth quarter profit and revenue both increased significantly from a year ago

National Sports, which offers athletic clothing, footwear and equipment, was launched in 1968 as National Gym Clothing Ltd, according to its website

Closing National Sports is part of the company’s strategy to increase operational efficiency and focus on core assets, said Greg Hicks, President and CEO of Canadian Tire Corp

“It’s a smaller banner for us, of course, but the decision to close the business is a matter of concentration,” he told investors. “There has always been a lot of overlap with this banner and with SportCheck and (Canadian Tire)”

In addition to a density of physical stores, he said there was also an overlap in e-commerce capabilities.

An assessment of the company’s portfolio as part of its operational efficiency program with an ‘investor mindset’ led to the decision to close the stores, Hicks said

“It was a company that was getting just enough capital for maintenance needs over the years, and it just wasn’t a critical asset for us,” he said, adding, “We couldn’t just not find a sustainable goal”

Meanwhile, the move came as Hicks told investors the company’s fourth quarter results were “nothing short of phenomenal” and that its full year results were strong despite operating challenges during a pandemic.

The retailer said its net income attributable to shareholders was $ 488 million or $ 7.97 per diluted share for the quarter ended Jan. 2

Earnings were up $ 334 million in net income attributable to shareholders or $ 5.42 per diluted share in the fourth quarter from a year earlier

On an adjusted basis, Canadian Tire said it earned $ 8.40 per diluted share, up from $ 5.53 a year earlier

Analysts on average expected adjusted earnings of $ 6.69 per share and $ 4.83 billion in revenue, according to financial data firm Refinitiv

National Sports

Ebene News – CA – Canadian Tire is closing all National Sports stores due to higher than expected revenues

Source: https://www.cp24.com/news/canadian-tire-closing-all-national-sports-stores-amid-higher-than-expected-revenues-1.5314072