Canadian Tire Corporation, Limited

Diluted EPS was $4.27, up 13% year over year on a normalized basis. Retail sales rose 4.4% and retail revenue rose 5%; excluding Petroleum, retail sales were up 1.7% and revenue up 1.5%. Comparable sales were up 3.2% at retail, with all three banners growing more than 3%. Gross margin rate excluding Petroleum was 35.6%, down 16 basis points year over year. Retail SG&A as a percentage of revenue, excluding Petroleum, improved 29 basis points to 24%. Retail IBT increased nearly 3% to $198 million, while normalized retail EBITDA grew 2% to $495 million. Financial Services delivered 18% IBT growth; GAAR increased 4.2%; aging was 3.4%; net write-off rate was 7.2%; the allowance was $935 million and the allowance rate was 11.7%. For capital allocation, 2026 CapEx is expected to be between $450 million and $500 million, the annual dividend will increase to $7.30 per share beginning in March, and the company expects to complete close to 80% of its $400 million share repurchase intention for 2026 by year-end. For Q4, management said sales are off to a slower start, but winter has not arrived yet, and it expects some gross margin rate pressure, some SG&A rate pressure, and continued improvement in bank profitability if credit metrics remain stable.

Greg Hicks said the quarter showed that True North is increasingly translating into results: stronger customer connections, better omnichannel execution, more personalized value and share gains across banners. He stressed that the consumer is still cautious, but not absent, and that Canadian Tire is winning when the value proposition is right. His tone was optimistic but realistic, emphasizing that the biggest test is still ahead in Q4 because of tough comps, weather uncertainty and constrained holiday spending.

Darren Myers highlighted broad-based execution and the financial benefits of disciplined cost control. He cited $4.27 diluted EPS, retail IBT of $198 million, normalized retail EBITDA of $495 million, gross margin of 35.6% excluding Petroleum, SG&A at 24% of revenue excluding Petroleum, and Financial Services strength including $935 million of allowance and a 7.2% net write-off rate. He also gave the capital allocation outlook: 2026 CapEx of $450 million to $500 million, an annual dividend increase to $7.30 per share, and near completion of the $400 million buyback plan. For Q4, he said SG&A rate pressure is likely from marketing and IT timing plus the absence of last year’s restructuring and extra-week benefit, while retail gross margin could face pressure from fuel headwinds and a strong prior-year rate.

Analysts focused on how Canadian Tire is sustaining comp momentum despite weak consumer sentiment, and management repeatedly pointed to data-driven pricing, targeted promotions, loyalty and omnichannel execution as the answer. Questions on Q4 centered on weather and margin pressure; management said winter has not shown up yet, they are comping strong storms from last year, and there is still a lot of quarter left. On the bank, management said credit remained resilient, insolvencies were a bright spot this quarter, and profitability should keep improving if credit trends stay stable. Analysts also asked about the holiday strategy and e-commerce; management said holiday is a $5 billion-plus TAM with clear headroom, while CTR e-commerce is benefiting from click-and-collect, DoorDash and free ship-to-home for Triangle members.