TORONTO -- National retailer Canadian Tire Corp. (TSX:CTC.A) says a late start to spring couldn't hold back sales growth in the second quarter.
The Toronto-based company, which also announced the appointment of a new chief executive on Thursday, reported that net income grew to $178.9 million compared to $154.9 million in the comparable quarter a year earlier.
On a per share basis, the results were equivalent to $2.12 compared to $1.91 in the same period last year.
Revenue increased to $3.17 billion from $3.02 billion helped by sales at FGL Sports, the subsidiary that operates the Sport Chek and recently-acquired Pro Hockey Life stores.
Canadian Tire CEO Stephen Wetmore said the strong second quarter is important for the retailer, which depends on increased spending in the spring by consumers preparing for summer activities, vacations and home renovations.
"Performance at Canadian Tire was strong across all categories, particularly given the late arrival of spring weather," he said in a statement.
Meanwhile the company, which also owns clothing retailer Mark's, announced that Canadian Tire president Michael Medline will take over the CEO position from Wetmore starting on Dec. 1.
Wetmore will remain on Canadian Tire's board in a non-executive role of deputy chairman that will be created for him.
For the quarter, same-store sales at Sport Chek increased 10.8 per cent, while the same key measurement of retail performance at Mark's stores was up 3.2 per cent. Canadian Tire saw same-store sales growth of 2.8 per cent.
"The key take-away from the CTC results is that the company delivered a strong Q2, better than expected, with the beat primarily driven by retail segment despite slow start to spring/summer season," wrote Irene Nattel, an analyst with RBC Dominion Securities, in a note.
Founded in 1922, Canadian Tire has nearly 1,700 retail and gasoline outlets across the country, including various banners under FGL Sports, such as Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere.
The company also holds a majority interest in CT Real Estate Investment Trust (TSX:CRT.UN), which acquired most of the company's real estate last year, and operates a financial services division which includes credit cards.
