Business

The Canadian Press - ONLINE EDITION

Sears Canada posts weak sales during holiday shopping season, steady Q4 results

By: The Canadian Press

Posted: 02/27/2013 6:57 AM | Comments: 0 | Last Modified: 02/27/2013 11:32 AM

People wait for Sears to open in downtown Vancouver, September 21, 2012. THE CANADIAN PRESS/Jonathan Hayward

TORONTO - Sears Canada Inc. (TSX:SCC) said profits remained steady in the fourth quarter compared with a year earlier as one-time items offset a decline in sales during the holiday shopping season.

The Toronto-based retailer reported Wednesday it had $39.9 million of net earnings or 39 cents per share in the 14-week period ended Feb. 2.

The results were practically unchanged from a year earlier when the company had $41 million of net income during a shorter, 13-week period ended January 28, 2012.

However, revenue and same-store sales declined in the important holiday shopping period. The national retailer's revenue fell to just under $1.3 billion — down about $60 million from a year earlier.

Same-store sales fell 3.8 per cent from a year earlier.

President and chief executive Calvin McDonald said the company, which is in the midst of attempting a major turnaround, continues to push ahead with its three-year transformation plan.

"Although sales were lower than (the same time) last year, our same-store sales performance in the fourth quarter improved over the three prior quarters," he said in a release.

"Home electronics and Craftsman, which includes snowblowers and hardware, contributed to the majority of our sales decline."

The retailer's profit in the latest quarter received support from two special items — a $21.1-million gain related to a voluntary buyout program and an $8.6-million gain related to the sale of its share of a joint venture.

Adjusted earnings, excluding those and several other items, fell to $62.4 million from $101.8 million.

Sears Canada shares were down 3.87 per cent, or 36 cents, at $8.94 Wednesday morning on the Toronto Stock Exchange.

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Business

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.