(Compares with estimates, adds details on results, background)
Aug 8 (Reuters) - Department store and online retailer Canadian Tire Corp Ltd CTCa.TO reported lower-than-expected quarterly profit on Thursday, hurt mainly by lower margins in its petroleum retail business.
The company said net fuel margins per litre fell in a competitive market, which has also been hit by the implementation of a carbon tax in some regions.
Net income rose to C$203.8 million, or C$2.87 per share, in the second quarter ended June 30 from C$ 174.4 million, or C$2.38 per share, a year earlier. items, it earned C$2.97 per share, missing the average analyst estimate of C$3.01, according to Refinitiv IBES.
The Toronto-based company's revenue of C$3.69 billion ($2.78 billion) also missed analysts' estimate of C$3.71 billion.
Canadian Tire has been spending to broaden its retail offerings by including private labels in addition to rolling out options like home delivery and aggressively pushing e-strategies as it looks to compete with global ecommerce giants like Amazon.com (NASDAQ:AMZN) and Walmart (NYSE:WMT) Inc to win back market share.
Separately, Canadian Tire also said it agreed to buy Party City Holdco Inc's PRTY.N Canadian business for C$174.4 million ($131.23 million), a deal that would immediately add to its earnings. ($1 = 1.3292 Canadian dollars)