Canadian Tire quarterly profit dips on higher costs

Retailer Canadian Tire Corp Ltd (CTCa.TO) reported a near 20% fall in quarterly profit on Thursday, hurt by higher costs and lower demand as inflation-weary consumers cut back on high-margin discretionary purchases.

Like its U.S. peers, Canadian Tires’ profits are getting squeezed as consumers pinched by higher prices for everything from toothpaste to gas curtail spending on non-essential items such as apparel and home decor.

The company’s net income fell to C$225 million ($165.83 million) in the third quarter ended Oct. 1 from C$279.5 million a year earlier.

The company’s total revenue rose 8.1% to C$4.23 billion ($3.12 billion), in line with analysts’ average estimate of C$4.23 billion, according to IBES data from Refinitiv.

($1 = 1.3568 Canadian dollars)