Thanks very much!
EPS of $4.07 missed estimates of $4.26; revenue of $4.50B missed estimates of $4.58B. EBITDA of $605M missed estimates by 5.4%. Easy comparisons, particularly in 1H, may allow Canadian Tire to start exhibiting revenue growth in the low single digits for 2025, according to consensus. Better traffic in January, stemming from the Black Friday shift and the end of the Canadian Post strike, may be a significant 1Q tailwind. The looming US-Canada trade war could slow some momentum as it can damp Canadian GDP and employment trends, possibly affecting demand and credit-card delinquencies for the company. Canadian Tire imports about 15% of its inventory from the US, though management said it might find domestic suppliers for all of that if the conflict deepens. Better operating leverage and positive revenue growth allowed adjusted Ebitda margin to expand 40 bps in 4Q. Investors did not like the earnings 'miss', but at 10X earnings we would be fine buying a partial position, with some added caution around the trade war situation. 10% earnings growth is still expected this year.