Canadian Tire Corp. Ltd. reported a one per cent decline in consolidated sales for the first quarter, attributing the drop partly to an extended winter across much of the country. The company announced the results on Thursday, noting that the prolonged cold weather delayed the typical spring shopping season.
Comparable Sales Decline
Comparable sales at Canadian Tire retail stores fell 2.3 per cent in the quarter ended April 4. The decline was most pronounced in seasonal and gardening categories, which were directly impacted by the weather. However, fixing categories saw growth as customers focused on repairs and maintenance during the winter months.
Chief executive Greg Hicks addressed the situation during an earnings call with analysts on Thursday. "Unfortunately, the seemingly endless Q1 winter clearly delayed the warmer weather and the inevitable sales it brings," he said. "Like our customers, we have been patiently awaiting spring."
Seasonal Timing Challenges
Hicks explained that the seasons did not align neatly with the company's quarterly reporting dates. The first week of the quarter was negatively affected because strong winter sales had been pulled into the previous year's 53rd week. Meanwhile, the final week of the first quarter saw weaker sales compared to the same period last year, as spring arrived later. Without these factors, overall comparable sales would have been positive, Hicks added.
Geographically, Western Canada outperformed other regions due to better weather, while Ontario and Quebec experienced weaker sales tied to the seasonal slowdown.
Growth in Other Segments
Despite the overall sales dip, some divisions performed well. SportChek, the active wear and casual wear retailer, saw sales growth of 3.3 per cent, while Mark's increased by 1.2 per cent. Hicks noted that the company had "positioned the business for spring demand," which contributed to these gains.
Consolidated revenue grew by 3.3 per cent to $3.57 billion in the quarter. Retail revenue rose 2.9 per cent, and five per cent when excluding petroleum sales.
Loyalty Program and Consumer Behavior
The retailer's loyalty sales outpaced non-loyalty sales, reflecting growth in active Triangle Rewards members. This was supported by partnerships launched with Royal Bank of Canada and WestJet during the quarter.
Hicks also commented on consumer behavior amid economic volatility. "Similar to our comments at the end of 2025, we see a Canadian customer that is resilient but discerning," he said. "In the face of macroeconomic confusion, they have their chin up and their eyes wide open." He noted that customers are shopping but are more selective and value-driven, responding to strained budgets.
Data from the Triangle credit card showed significant increases in household spending at the gas pump, which Hicks said "has their attention." In response to customers searching for value, the retailer has lowered prices on some products.
