Canadian Tire Corporation, Limited

Thank you for standing by. My name is Lauren Cannon and I will be your conference operator today. Welcome to the Canadian Tire Corporation earnings call. All lines have been placed on mute to prevent any background noise. Following today's presentation, there will be a question and answer period. If you would like to ask a question, simply press star 1 1 on your telephone keypad. To withdraw your question, please press star 1 1. Now I will pass along to Karen Keyes, Head of Investor Relations for Canadian Tire Corporation. Karen?

Thank you, Lauren. Good morning, everyone. Welcome to Canadian Tire Corporation's third quarter 2025 results conference call. With me today are Greg Hicks, President and CEO, Executive Vice President and CFO Darren Myers, and TJ Flood, Executive Vice President and Chief Operating Officer. Before we begin, I'd like to remind you that today's discussion contains information that may constitute forward-looking information within the meaning of applicable securities laws, including management's current expectations regarding future events and the company's True North strategy. Although the company believes that the forward-looking information in today's discussion is based on information, estimates, and assumptions that are reasonable, Such information is necessarily subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking information. For information on these material risks, uncertainties, factors, and assumptions, please see the company's MD&A, which is available on our website and filed on CDAR+. The company does not undertake to update any forward-looking information, whether written or oral, except as is required by applicable laws. I would also highlight that our discussion today will focus on the normalized results of the business on a continuing operations basis. Remember that the sale of Helly Hansen completed on May 31st, with the business being treated as a discontinued operation and no results up to that date. After our remarks today, the team will be happy to take your questions. We'll try to get in as many questions as possible. but ask that you limit your time to one question plus a follow-up before cycling back into the queue. And we welcome you to contact Investor Relations if we don't get through all of your questions today. I will now turn the call over to Greg.

Thank you, Karen, and good morning, everyone. In Q3, we performed very well while continuing to make True North investments across both our retail and our financial services businesses. We achieved strong top-line and underlying retail performance across our business. Our loyalty engagement increased, with over 7 million members shopping our banners in the quarter, an increase of 3%. Sales also grew across our major banners, with CTR and SportCheck driving revenue gains. These results were supported by our team's very strong margin management. And ultimately, diluted earnings per share grew nearly 7%. There's no question that the consumer demand landscape remains dynamic, yet Canadian shoppers continue to demonstrate admirable resilience. We are cautiously optimistic, recognizing the macroeconomic backdrop remains uncertain and unpredictable, with ongoing trade negotiations and government actions that will shape the Canadian economy for years to come. We are actively monitoring these trends and developments, ensuring we remain agile, and responsive. And like the entire retail industry, we are watching the Canada Post labor dispute closely, and with disappointment that it comes at a time when consumers are craving value. With one of Canada's best love flyers, this is a headwind that we are working to match, and we are hopeful this situation stabilizes swiftly and sustainably. With the launch of TrueNorth, we've talked at length about the importance of CPC performing and transforming in parallel. That was evident in Q3 as we charted strong results while advancing our transformation. We've done the work to organize and set our teams up for success, both at the corporate and store level. In September, we held our annual Canadian Tire Dealer Convention, and there's no question that the dealers are aligned with where we're going strategically. In Q3, we also completed our internal restructuring as planned. With our new organizational structure now complete, we are set to accelerate the next phase of our journey, which includes harnessing technology and AI to drive the business forward and deliver operating leverage. We're moving the entire enterprise to take more streamlined approaches based on data-informed go-to-market strategies and great retail execution. As we continue to roll out this new approach, the impact will be evident in our retail forward strategic cornerstone. You can expect us to show up as an even better retailer through a mix of both tested and new tactics. We'll leverage the alignment of the dealers, our restructured teams, our high-low pricing, and our omni-channel customer experience to capture market share. For instance, throughout 2025, our e-commerce growth continues to outpace bricks and mortar as we invest in great digital customer experiences. Awareness of our comprehensive range of omnichannel offerings and services, like in-store pickup of online orders, ship to home, and same-day delivery across all our banners continues to increase, helping us grow. The awareness is critical in both busy urban markets and non-Vectom markets, which represent around 70% of our sales. And with the majority of our transactions starting online, we continue to explore a variety of enhancements, including leveraging new AI tools to improve search performance and to identify the triangle offers Canadians need, building on enterprise-level customer data. As we've done over the last many months through TrueNorth, we are also continuing to refine our promotional and digital engagement, adapting to changing customer behaviors and reducing our reliance on traditional channels. Likewise, as you saw in our Q3 results, our AI pricing tool, David, is helping us analytically engineer promotional programs and optimize regular pricing to provide customers the value they crave, all while managing our margins. In our conversations with globally scaled advisors and partners, David has been called out as one of the leading North American examples of how retailers are using generative AI at scale. David builds on our unique first-party data, which remains a key differentiator in our modernization efforts and our deployment of AI. Our data is a sustained competitive advantage that also delivers considerable value to our customers. Our Triangle Rewards Program is another cornerstone of our strategy, and by partnering with other strong Canadian brands, we are driving the scale of both the Triangle brand and the valuable first-party customer data generated. Case in point, our first partnership with Petro Canada has been very successful, growing to nearly 520,000 linked members and over $100 million of incremental sales. In the quarter, 10% of Triangle members were active at Petro Canada. In Q3, we announced our newest loyalty partnership with Tim Hortons, which, in addition to being the nation's largest quick-serve restaurant chain, is a brand loved by Canadians coast to coast. This partnership feels like a natural fit, and given their positive response to our announcement, we know that Canadians agree. At the same time, we continue preparing internally to launch our RBC and WestJet loyalty partnerships. With our RBC partnership now in the soft launch phase, customers can now link their Triangle Rewards and RBC payment card to accelerate their earnings. This soft launch period will provide us important learnings as we prepare for a full launch with RBC in early 2026, as well as WestJet and TIMSS, both planned for later next year. With new partnerships like these, Triangle is expanding from a loyalty program into a powerful Canadian network, offering value to the millions of Canadians who engage with these programs every day. You can expect us and partnerships, the natural customer engagement, and the associated brand awareness in 2026 and beyond. And with that, I'll hand it over to Darren to take you through our Q3 results.