Thursday, August 27th28.0°C
27271
24949

Sears Canada widens Q2 loss to $21.3 million, same store sales drop 6.8 per cent

TORONTO - Sears Canada Inc. (TSX: SCC) lost $21.3 million in its latest quarter as it was hit by severance and impairment charges and an unseasonably cool spring that hurt sales.

The struggling retailer said Wednesday the loss amounted to 21 cents per share, in the second quarter, compared to a profit of $152.8 million, or $1.50 per share, in the same period last year when its results were boosted by early lease terminations.

Revenue for the 13-week period ended Aug. 2 totalled $845.8 million compared to $960.1 million year-over-year.

The drop came as same-store sales, a key measure in retail, dropped 6.8 per cent, which the company attributed partly to the unseasonably weather that it said deterred customers.

"We took aggressive markdowns to clear aged inventory and surplus spring merchandise, and ended the quarter with 20 per cent less spring/summer inventory than last year," said Sears president and CEO Douglas Campbell in a release.

"This puts us in an improved inventory quality position heading into the fall season, allowing us to devote more of our selling floor space to seasonally relevant items as we move forward."

Campbell also noted that the company cut costs by 13.3 per cent in the quarter compared with a year ago after excluding restructuring and other one-time items.

Sears Canada has struggled in the face of stiff competition from Hudson's Bay Co. and Walmart and worked to restructure its operations to survive.

With many shoppers looking for high-end luxury brands or super cheap deals, Sears has been caught in the middle with its focus on middle-class families.

The company announced earlier this year a plan to cut 2,200 jobs on top of thousands more it eliminated last year.

The company has also sold leases in some of its highest profile locations including the Toronto Eaton Centre as part of a move to reduce costs.

Earlier this month, Sears said it will receive $27.7 million from the sale of its 20 per cent stake in the Kildonan Place shopping centre in Winnipeg.

The move is part of a sale of the property with partner Ivanhoe Cambridge, which owns the remaining 80 per cent of the interest.

The Canadian Press


Read more Business News

25990


Recent Trending




Today's Market
S&P TSX13766.67+385.08
S&P CDNX545.55+15.85
DJIA16654.77+369.26
Nasdaq4812.71+115.17
S&P 5001987.66+47.15
CDN Dollar0.7588+0.0015
Gold1119.50-5.10
Oil43.24+0.68
Lumber242.90-4.00
Natural Gas2.666+0.002

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.24+0.05
Cantex0.04-0.01
Anavex Life Sciences1.35+0.00
Metalex Ventures0.055+0.000
Russel Metals20.98+1.54
Copper Mountain Mining0.65+0.06
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.61-0.12

 





FEATURED Property
23769563788 Riviera Drive
3 bedrooms 3 baths
$599,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_





27313


Member of BC Press Council


26780