Canadian Tire (CTC) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong results with normalized diluted EPS up 10.4% to $3.94 and reported diluted EPS at $3.65, driven by higher net income, lower share count, and operational agility amid challenging weather and soft consumer sentiment.

• The True North strategy advanced with digital harmonization, AI-driven merchandising, and increased loyalty and e-commerce engagement, outpacing broader retail sales.

• Mark's and SportChek banners led comparable sales growth, supported by World Cup demand, new store formats, and loyalty member engagement.

• Price reductions and operational agility supported value-seeking customers and mitigated weather impacts.

• YTD Q2 2026 normalized diluted EPS grew by $0.40 to $5.96, and reported diluted EPS increased by $2.97 to $5.67.

Financial highlights

• Q2 2026 consolidated revenue rose 2.4% year-over-year to $4,302.9M; retail sales were $5,391.6M, up 4.5%, with retail sales excluding petroleum up 2.5%.

• Diluted normalized EPS increased 10% to CAD 3.94, driven by higher retail IBT, lower share count, and favorable tax rate.

• Retail IBT was $201.1 million normalized, up from $198.8 million; normalized retail EBITDA up 2.2% to $498 million.

• Gross margin rate excluding petroleum improved 33 bps to 35.1%; gross margin dollars up 1.5% to $1,440.1M.

• Retail SG&A was $769.2 million, down 1.3% year-over-year; SG&A as a percentage of revenue stable at 23.3%.

Outlook and guidance

• Full-year retail gross margin rate target of 35%+ reaffirmed, with some Q3 headwinds expected from higher transportation fuel surcharges and targeted investments.

• CapEx for 2026 revised to $450–500 million, slightly below original plan due to timing shifts.

• Early Q3 sales growth observed as summer weather improved; continued rollout of new store concepts and expanded loyalty partnerships planned.

• Transformation and advisory costs related to the True North strategy were lower in 2026, supporting improved profitability.