Canadian Tire updated November 11, 2020

Our report on Canadian Tire is updated and rated Buy at $165.25.   The Canadian Tire stores came though the pandemic extremely well. Even in Q@ when stores in Ontario were shut down for several weeks sales were up 20% for the quarter. Then in Q3 same-store sales were up an astonishing 25%. The sports stores and Mark’s were down substantially in Q2 due to the pandemic. But in Q3 Sport Chek was down only 1% in same-store sales and Mark’s was up 6%. The credit card operation is weaker as they have not been aggressively trying to sign up new card holders and bad debts are up somewhat although not as bad as expected. Overall, Canadian Tire is doing very well and remains a Buy.

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