Companies

World Cup demand lifts SportChek as Canadian Tire's flagship stores slip in Q2

Canadian Tire Corp. grew normalized EPS 10.4% to $3.94 on modest 0.7% comparable sales growth, with SportChek up 8% and the core Canadian Tire banner down 0.8%.

By John Wilson · August 13, 2026

Canadian Tire Corp. reported higher second-quarter profit on Thursday, but the details showed a retailer leaning on soccer fans and work-wear buyers while its namesake stores struggled with poor weather and cautious shoppers.

Consolidated comparable sales rose 0.7 per cent in the quarter ended July 4, and 6.3 per cent on a two-year basis. SportChek led the way with an 8.0 per cent comparable-sales gain, which the company tied to demand around the 2026 Men's World Cup.

The numbers

The board declared a quarterly dividend of $1.80 a share, payable Dec. 1.

Revenue was $4.30 billion, compared with $4.20 billion a year earlier.
Net income was $214.2 million, or $3.65 per diluted share, up from $188.3 million, or $3.07.
Normalized diluted earnings per share from continuing operations were $3.94, up 10.4 per cent from $3.57.
Retail sales reached $5.39 billion, up 4.5 per cent; excluding petroleum, they rose 2.5 per cent.
Comparable sales fell 0.8 per cent at the Canadian Tire Retail banner, rose 8.0 per cent at SportChek and rose 4.2 per cent at Mark's.
Financial Services receivables grew 4.2 per cent.

Behind the headline

Chief executive Greg Hicks said the company lowered prices "for value-seeking customers" and adapted to "challenging weather conditions" during the quarter. At the flagship banner, automotive sales grew for a 24th consecutive quarter, partly offsetting weaker weather-sensitive categories, and e-commerce sales rose 14 per cent.

Profit growth outpaced sales in part because of cost control: retail selling, general and administrative expenses fell 1.3 per cent, and the retail gross margin rate excluding petroleum improved 33 basis points to 35.1 per cent. A smaller share count also helped per-share earnings; the company had completed about 47 per cent of a plan to buy back up to $400 million of stock by the end of 2026.

The caveats

Several of the quarter's tailwinds may not repeat. The World Cup boost at SportChek is a one-time event, and the core Canadian Tire banner, the company's largest, posted negative comparable sales. Retail revenue excluding petroleum actually fell 1.1 per cent, meaning higher gas prices flattered the top line. On a normalized basis, consolidated pre-tax income rose only 1.6 per cent, a much slimmer gain than the per-share figure suggests.

What it means for Canadian shoppers and investors

For shoppers, the results confirm that retailers are competing on price for budget-conscious customers, which tends to mean more promotions and loyalty offers. For investors, the report is a reminder to look past headline earnings per share: buybacks and cost cuts can lift that number even when underlying sales growth is thin. Retail stocks are sensitive to consumer confidence, weather and fuel prices, so they are usually held as one part of a diversified portfolio rather than a core position. This is general information, not personal advice.

Sources

General news and information, not individualized financial advice. Figures reflect the publication date.