Sears Canada reports weak holiday season sales, steady profits
Shoppers leave the Sears store in downtown Vancouver, B.C., on Friday, March 2, 2012. (Darryl Dyck / THE CANADIAN PRESS)
Published Wednesday, February 27, 2013 8:44AM EST
Last Updated Wednesday, February 27, 2013 11:30AM EST
TORONTO -- Sears Canada Inc. 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.