Canadian Tire Corp. reported lower profit in its second quarter as costs of exiting its Helly Hansen Brand out of Russia took a bite out of earnings while revenue beat expectations in the period.
On Thursday, the Canadian retail company reported lower net income, falling to 177.6 million Canadian dollars (US$139 million), or C$2.43 a share, compared with C$259.1 million, or C$3.64 a share a year earlier.
Adjusted earnings fell to C$3.11 a share from C$3.72. According to FactSet, analysts were expecting a gentler fall to C$3.60 a share.
The company booked a one-time cost for the exit of its Helly Hansen operations in Russia of C$36.5 million as well as certain operation efficiency program costs of C$9.7 million.
Revenue rose more than 12% to C$4.4 billion, beating analyst excitations of C$4.34 billion. Canadian Tire said its breadth of product assortment and higher mix of in-store shopping compared with the prior year period helped boost consolidated comparable sales by 5%, excluding petroleum.
Canadian Tire declared a quarterly dividend of C$1.625 a share.