Canadian Tire (CTC) Q1 2026 earnings summary

Executive summary

• Q1 consolidated revenue grew 3.3% year-over-year to $3,570.9 million, with retail revenue up 2.9% (5% excluding petroleum), driven by SportChek and CTR, despite a 1% decline in comparable sales due to weather and timing shifts.

• Diluted EPS reached $2.02, up from $0.67 (or $2.00 normalized) in Q1 2025, with net income rising 127.6% to $129.5 million; Q1 2025 included $114.1 million in transformation and advisory costs.

• Retail revenue (excluding petroleum) rose 5% year-over-year, supported by restocking, new spring products, and value-focused initiatives such as price reductions on over 10,000 SKUs.

• Mark's and SportChek achieved sales growth, while CTR sales declined, particularly in seasonal and garden categories; SportChek comp sales up 3.3%, Mark's up 1.2%.

• Digital enhancements and loyalty partnerships with RBC and WestJet drove incremental sales and added hundreds of thousands of new linked members.

Financial highlights

• Retail gross margin dollars increased 5.8% to $1,034.5 million, with gross margin rate (excluding petroleum) stable at 36.1%.

• Retail EBITDA increased 4.6% to $349.7 million; retail IBT was $50.9 million; consolidated EBITDA grew 3.5% to $437.1 million.

• Income before income taxes surged 227.7% to $169.1 million; net income attributable to shareholders was $107.0 million, normalized net income $111.4 million.

• Credit card sales up 4.7%; GAAR up 3.1%; Financial Services revenue grew 5.3% to $416.5 million, but IBT declined 3.1% to $94.2 million.

• Retail ROIC improved 56 bps to 10.9%.

Outlook and guidance

• Inventory is well-positioned for spring and summer, with dealer inventory up 5% as of Q1 end.

• Q2 faces a tough comp and a slow start to spring due to lingering cool weather; June is expected to be the biggest month.

• Full-year 2026 operating capital expenditures expected to be $500 million to $550 million.

• Management remains focused on OpEx control, flexibility, and advancing the True North strategy.