Q1/26 Results: Controlling the Controllables

研报英文原文证据摘录

Q1/26 Results: Controlling the Controllables

Consumer Discretionary

Canadian Tire Corporation, Ltd.

TD SECURITIES INC. - CANADA QUICK TAKE: EARNINGS UPDATE

May 14, 2026

Price: C$182.39 (05/13/2026) Q1/26 Results: Controlling the Controllables

Price Target: C$205.00

HOLD (2)

ESG SCORE: 53/100

Brian Morrison, CA^ THE TD COWEN INSIGHT

416 944 6868

We view the Canadian Tire (“CTC”) Q1/26 results as mixed. On the positive, financial

brian.morrison@tdsecurities.com

performance was stable and in line with our forecast following a strong Q1/25, with

Catherine Sung^ encouraging Retail GM/SG&A performance aided by True North initiatives. On the negative,

416 982 6833 Retail sales lacked the "jumpstart” we anticipated as weather was a headwind, not tailwind,

catherine.sung@tdsecurities.com

resulting in negative comp sales notably at CTR.

Key Data

Symbol TSX: CTC.A-T Impact: MIXED

Market Cap C$9.7B

Q1/26 Results: For the seasonally weak quarter/only 53mm shares outstanding, we view the

results as in line: Normalized EPS $2.02, our forecast/consensus $2.09/$1.93 (Q1/25: $2.00)

with no major variances per segment.

Retail Summary: Ex-Petroleum revenue increased ~4.9% y/y (slightly ahead of our 4.2%

forecast) with revenue supported by dealer shipments for spring/summer season. Notable

however was the y/y comparable sales that were negative 1.0% including CTR -2.3%,

SportChek +3.3%, Mark’s +1.2%. This is attributable to the prolonged winter/late spring weather

in key markets impacting traffic that likely is continuing in early Q2/26. We note CTC was

lapping strong Q1/25 SSSG of 4.7%.

Gross margin (ex-Petroleum) was flat y/y at 36.1%, in line with our forecast. This is a solid result

as True North initiatives, including optimized product assortment/limited promotional activity