(Toronto) Canadian Tire plans to reduce the size of its workforce by about 3% in the fourth quarter as consumer demand slows.
Additionally, the retailer said Thursday that eliminating the majority of currently vacant positions would result in an additional 3% reduction in the workforce.
Canadian Tire said it expects to record a charge of between $20.0 million and $25.0 million to its fourth quarter accounts in connection with this decision, while the resulting savings are expected to be approximately $50.0 million on a monthly basis. annualized.
The company posted an increase in its quarterly dividend on Thursday and a loss for its most recent quarter. Its results were undermined by a one-time charge related to its agreement to buy back the 20% stake in Canadian Tire Financial Services that was held by Scotiabank.
Canadian Tire will now pay a quarterly dividend of $1.75 per share, an increase of 2.5 cents per share from the previous dividend.
Net loss attributable to Canadian Tire shareholders was $66.4 million, or $1.19 per share, for the quarter ended September 30, compared to a profit of $184.9 million, or $3.14 per share, for the same period last year.
These results included a charge of $328 million related to the Scotiabank transaction, partially offset by an insurance recovery of $131 million for a March fire at one of its distribution centers.
On a normalized basis, Canadian Tire posted earnings of $2.96 per share in the most recent quarter, compared to $3.34 per share for the same period last year.
Revenues totaled $4.25 billion, up from $4.23 billion in the same quarter last year, while consolidated sales at stores open at least a year declined 1.6%.
Company in this dispatch: (TSX: CTC. A)
