TORONTO – Canadian Tire Corp. GmbH According to an internal assessment, all national sports stores will be closed in order to reduce overlaps in the company’s sporting goods range

All 18 retail stores in southern Ontario will be closing, Gregory Craig, the retailer’s chief financial officer, told investors Thursday

“This has been a difficult decision, especially because of its impact on people,” he said during a conference call. “We are committed to adding affected employees to our corporate family”

The company, which operates multiple retailers including Canadian Tire, Marks, SportChek, Atmosphere, Sports Experts, and Pro Hockey Life, announced that both earnings and sales increased significantly year over year in the fourth quarter

National Sports, which carries sportswear, shoes and equipment, was founded in 1968 as National Gym Clothing Ltd, according to his website

The closure of National Sports is part of the company’s strategy to increase operational efficiency and focus on core assets, said Greg Hicks, president and CEO of Canadian Tire Corp.

“It sure is a smaller banner for us, but the decision to close the deal is a matter of focus,” he told investors. “There has always been some overlap with this banner and both SportCheck and (Canadian Tire)”

In addition to a density of physical stores, there is also an overlap between the e-commerce functions

An “investor mindset” assessment of the company’s portfolio as part of its operational efficiency program led to the decision to close the deal, Hicks said

“This has been a company that has received just enough capital for maintenance over the years and just wasn’t a central capital for us,” he said, adding, “We just couldn’t find another purpose”

Meanwhile, the decision was made when Hicks told investors that the company’s fourth quarter results were “downright phenomenal” and that full-year results were strong despite the challenges of a pandemic

The retailer reported that its net income attributable to shareholders was $ 488 million, or $ 797 per diluted share for the quarter ended January 2

Earnings increased from $ 334 million net income attributable to shareholders or $ 542 per diluted share for the fourth quarter of last year

On an adjusted basis, Canadian Tire said it made $ 840 per diluted share from $ 553 a year earlier

Analysts had expected average adjusted earnings of $ 669 per share and $ 4.83 billion in revenue, according to financial data firm Refinitiv

National Sports

World News – CA – Canadian Tire closes all National Sports stores with revenues above expectations

Source: https://www.cp24.com/news/canadian-tire-closing-all-national-sports-stores-amid-higher-than-expected-revenues-1.5314072