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.

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.

Same-store sales growth 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.

(Reporting by Sneha Banerjee in Bengaluru; Editing by Savio D'Souza)