Q: Could you please shed more light on the components causing Canadian Tire EPS to go from over $15 / share in Feb 2023 to below $5 / share in Feb 2024.
I'm thinking about buying and selling lots at current prices to lower my costs, but I would like to understand the EPS drop more clearly before proceeding.
Thanks.
I'm thinking about buying and selling lots at current prices to lower my costs, but I would like to understand the EPS drop more clearly before proceeding.
Thanks.
5i Research Answer:
It is correct that CTC.A’s EPS declined quite significantly in FY2023, mainly because of a few factors such as declining sales and inefficient cost control, which led to a meaningful decrease in EBIT, and increasing interest expense. EPS was also hit hard by a one-time charge due to the negotiations with Scotiabank to repurchase the shares of CTFS Holdings for $895.0 million resulting in a change to fair value of $328.0 million. This one time expense alone has reduced EPS by $5.81.