Sales of Canadian retail stores rose around 10.7 per cent in the first quarter of 2021 on a year-over-year (YoY) basis, a record high surge, as per data by national agency Statistics Canada. The industry has completely rebounded from the COVID-led slump in retail sales in the second quarter of last year.
E-commerce retail sales swelled nearly 78.2 per cent in Q1, and analysts expect record-high YoY growth this year, led by their rising sales.
We explore two of leading retail operators in Canada: Canadian Tire (TSX:CTC.A) & Walmart (WMT:US, NYSE:WMT). These largecap stocks have been big players in Canadian markets.
Canadian Tire Corp. Ltd. (TSX: CTC.A)
The diversified retailer’s stock price has increased 24 per cent to C$ 207.30 apiece on May 26.
The stocks of Canadian Tire (TSX: CTC.A) grew over 16 per cent quarter-to-date (QTD). It is up 84.51 per cent in one year, driven by the essential-product sales.
The company posted a 10 per cent YoY rise in revenue and a profit of C$ 151 million in the first quarter of 2021, compared to a loss a year ago. The top line was C$ 3.32 billion in Q1 2021 against C$ 2.85 billion in Q1 2020.
Canadian Tire’s eCommerce sales skyrocketed by 257 per cent year-over-year (YoY) to C$ 450 million in Q1 2021.
It has earmarked a quarterly dividend of C$ 1.175 apiece to its shareholders, which will be distributed on September 1.
Canadian Tire's One-Year Stock Performance Against Moving Average Multiple. (Chart Source: Refinitiv)
The stock managed to continue its uptrend trajectory on May 26 well above its moving average multiple.
Walmart Inc. (WMT:US, NYSE:WMT)
Walmart Canada is building its first distribution facility in Atlantic Canada, and the company also introduced the first of its kind certified sustainable beef in the country.
The grocer’s stock has risen almost 15 per cent in one year, surpassing the S&P Hyper Markets and Super Centers Sub Index. However, it is slightly down by 1.4 per cent year-to-date (YTD).
In the first quarter FY22, the giant retailer recorded total revenue of US$ 138.3 billion, a rise of 2.7 per cent YoY. The company reported adjusted earnings per share of US$ 1.69. Its operating profit was US$ 6.9 billion in Q1 FY22.
Walmart’s One-Year Stock Performance Against Moving Average Multiple. (Chart Source: Refinitiv)
At the closing price of US$ 142.17 apiece on May 26, the stock was cruising above its nearly co-centric moving average multiple, representing a bullish trend.