Canadian Tire boosts sales despite balmy winter

Canadian Tire Corp. (CTC-T) reported a higher quarterly profit on Thursday once the impact of a tax settlement the previous year is excluded, boosting sales despite unusually warm winter weather.

The company is one of the country's biggest retailers. Its flagship Canadian Tire outlets sell housewares, sporting goods and automotive products, and the company also operates clothing and sporting-goods chains as well as gas bars.

Overall retail sales rose 21 percent to $3.71 billion due to the company's acquisition of the Forzani sporting goods chains, now called FGL Sports, which closed in August, as well as higher sales across other businesses.

The company's winter tire, light auto parts and outdoor tools businesses were hurt by the weather, but sales under the Canadian Tire banner still rose 2.7 percent, and sales at established stores, a key measure for retailers, rose 1.8 percent.

Same-store sales were 0.7 higher at FGL, and 3.1 percent higher at the company's clothing chain, Mark's.

Net income in the fourth quarter ended December 31 fell to $166.3 million, or $2.03 a share, from $169.3 million, or $2.07, in the same quarter last year. Excluding the tax settlement, earnings per share in the previous year came in at about $1.40.

Analysts, on average, had expected earnings of $1.89 a share, according to Thomson Reuters I/B/E/S.