Wednesday, March 4th-2.3°C
25405
23715

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

24279


Recent Trending




Today's Market
S&P TSX15082.84-51.01
S&P CDNX698.09-4.21
DJIA18096.90-106.47
Nasdaq4967.142-12.76
S&P 5002098.53-9.25
CDN Dollar0.8043-0.0006
Gold1201.60+1.00
Oil53.36+0.13
Lumber287.30-3.40
Natural Gas2.782+0.013

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.05
Cantex0.035-0.005
Anavex Life Sciences0.18+0.005
Metalex Ventures0.04-0.005
Russel Metals24.95-0.26
Copper Mountain Mining1.24-0.01
Colorado Resources0.13-0.005
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.225+0.01

 



25194

FEATURED Property
15092674561 Rittich Road, Kelowna, BC
10093789 bedrooms
$419,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...

_








Member of BC Press Council


24681