The ratings on Toronto-based Canadian Tire Corp. Ltd. reflect the company's leading position as the country's largest hard goods retailer, specializing in the home, leisure, and automotive categories. The ratings are further supported by the company's resilient earnings and solid same-store sales growth in the past several years, a stable capital structure, and ample financial flexibility, in addition to a well-managed financial services operation that contributes significantly to operating income. These factors are partially offset by profitability measures that are below the company's peer group, an elevated capital expenditure program, and a very competitive operating environment. Canadian Tire is one of Canada's largest general merchandise retailers, with revenues of C$8.5 billion for the last 12 months (LTM) ended June 30,
