(Adds segment details, profit comparison)
Nov 7 (Reuters) - Retailer Canadian Tire Corp Ltd missed third-quarter profit estimates on Thursday, hurt by higher e-commerce-related transportation costs and a drop in retail sales.
Competition from U.S. e-commerce giants Walmart and Amazon.com has hurt Canadian Tire’s brick-and-mortar sales and forced the 97-year-old company to invest heavily in its online business and provide faster delivery.
However, higher freight costs related to its SportsChek e-commerce business hurt net income, which fell to C$227.7 million, or C$3.20 per share in the third quarter ended Sept. 28, from C$231.3 million, or C$3.15 per share, a year earlier.
Revenue at the company’s retail segment fell marginally to $3.3 billion, while analysts on average were expecting it to be $3.43 billion, according to IBES data from Refinitiv.
Excluding items, Canadian Tire earned C$3.46 per share, missing estimates of C$3.47.
Total revenue rose marginally to C$3.64 billion ($2.77 billion), but missed estimates of C$3.73 billion, according to IBES data from Refinitiv. ($1 = 1.3163 Canadian dollars) (Reporting by Praveen Paramasivam in Bengaluru; Editing by Shinjini Ganguli)
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