Sales of Helly Hansen, the Norwegian manufacturer of outdoor apparel and workwear, which has been owned by Canadian Tire since 2018, decreased in Q3 by 3 percent from 159.5 million to 155.4 million Canadian dollars, a strong sequential improvement after the 21 percent decline in the second quarter. At constant exchange rates, sales decreased by only 1 percent, but the brand’s results benefited from a reduction in foreign currency hedging losses compared to the prior year.
The Canadian Tire retail chain, a fixture in Canada’s retail landscape selling everything from everyday items to auto parts, as well as many sports and outdoor products, saw sales increase 28 percent to C$ 2,322.7m up from C$ 1,813.2m, helped by a 178 percent increase in e-commerce sales and a +25.1 percent comp store sales gain. Top categories were kitchen and tools, as well as camping, gardening and backyard living.
Sales of the SportChek chain of sporting goods stores decreased by 2 percent to C$ 533.2m from C$ 543.3m in the third quarter, including a minus 1.4 percent comp, blamed on fewer promotional events, a slower back-to-school season, and declines in field hockey and team sports. Sales were also negatively impacted by the decision to move the bicycle inventory from SportChek to Canadian Tire stores in the second quarter. E-commerce was a bright spot, continuing to deliver strong growth. In categories related to outdoor recreation such as hiking, camping, golf and fitness, SportChek generally recorded strong sales.
Meanwhile, the company said retail sales at its Mark’s chain of casual apparel and workwear stores rose 4.9 percent compared with a year ago. The last quarter benefited from having all stores reopened after the widespread closures that continued through much of Q2, though reduced occupancy limits hurt profitability.