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UPDATE 2-Canadian Tire tops profit estimates on pandemic-led sales boost

(Compares with estimates; adds details from results, background)

Feb 18 (Reuters) - Canadian Tire Corp Ltd breezed past profit estimates and posted a 13% growth in holiday-quarter revenue on Thursday, as the home and sporting goods retailer’s online sales more than doubled on the back of a pandemic-led boom in e-commerce.

Demand for pool supplies, garden equipment and other home-related items has boomed since the onset of the COVID-19 outbreak as people splurge more on remodeling their living spaces during lockdowns.

Canadian Tire has been investing more in e-commerce in recent months, and doubling down on sportswear and apparel at its Mark’s and SportChek stores to attract younger shoppers.

Overall retail revenue jumped about 15% to C$4.58 billion, while company revenue rose about 13% to C$4.87 billion ($3.84 billion) in the fourth quarter ended Jan. 2.

Canadian Tire has also been controlling costs by centralizing operations including marketing and sourcing for its multiple retail banners, even as it incurs heavy supply chain costs due to the health crisis.

The automotive, home and sporting goods retailer’s net income attributable to its shareholders jumped about 46% to C$488.8 million, or C$7.97 per share.

Excluding items, Canadian Tire earned C$8.4 per share, crushing a Refinitiv IBES estimate of C$6.69.

Shares in the company have jumped about 5% this year. ($1 = 1.2692 Canadian dollars) (Reporting by Praveen Paramasivam in Bengaluru; Editing by Ramakrishnan M.)

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