(Corrects to "retail sales" from "same-store sales" in
paragraph 6)
Aug 13 (Reuters) - Retailer Canadian Tire Corp CTCa.TO
reported a lower-than-expected quarterly profit as sales growth
slowed in its sports gear and apparel wear stores and as
expenses rose.
The company's selling and administrative expenses rose 5.1
percent to C$782.3 million ($600.9 million) during the second
quarter ended July 4. ID:nCNWJWrhFa
Toronto-based Canadian Tire said the increase in expenses
was mainly due to labor costs and expenses related to the
company's digital strategy.
The company has been investing heavily in technology to
attract customers to its brick-and-mortar stores.
At FGL Sports, which sells sports-related products,
same-store sales rose 4.8 percent, compared with a rise of 8.2
percent a year earlier.
Retail sales at Mark's, which sells casual and work clothing
and footwear, rose 2.4 percent, compared with a 2.6 percent rise
a year earlier.
Adjusted net income attributable to the company fell 8
percent to C$166 million ($127.6 million), or C$2.15 per share,
below analysts' average estimate of C$2.2 per share, according
to Thomson Reuters I/B/E/S.
Retail sales rose 3.8 percent to C$3.86 billion. Retail
sales increased 4.8 percent a year earlier.
Up to Wednesday's close, Canadian Tire shares had risen more
than 6 percent this year.
($1 = C$1.3)