August 9, 2018 / 11:10 AM / a year ago

UPDATE 2-Canadian Tire profit misses estimates on higher costs

(Adds estimates, segment details)

Aug 9 (Reuters) - Canadian Tire Corp Ltd reported quarterly profit below analysts' estimates on Thursday, as the retailer ramped up investments to woo customers shifting to rivals such as Inc and Walmart.

The Toronto-based company has focused on building up its online business, increasing products available in its stores through partnerships, and earlier in the quarter launched a loyalty program.

These efforts pushed up retail sales 3.6 percent to C$4.25 billion ($3.26 billion) in the second quarter.

However, expenses rose about 5 percent to C$831.2 million, with net income attributable to shareholders dropping 20 percent to C$156 million.

The company has also bet on acquisitions and recently completed the acquisition of Norway-based Helly Hensen to bolster its high-end sportswear business.

Total comparable same store sales, excluding petroleum, rose 1.6 percent, boosted by demand for air conditioners, gardening products and footwear during the onset of summer.

Excluding items, it earned C$2.61 per share missing analysts' average estimates of C$3.04 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 3.2 percent to C$3.48 billion.

$1 = 1.30 Canadian dollars Reporting by Shanti S Nair in Bengaluru; Editing by Sriraj Kalluvila

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