BUSINESS

Sears Canada Earnings: Weak Holiday Revenue, Drop In Same-Store Sales Drag Down Retailer

02/27/2013 07:56 EST | Updated 04/29/2013 05:12 EDT
AP
In this Friday, Nov. 9, 2012, photo, a Sears store is shown in Hialeah, Fla. Shares of Sears Holdings fell Tuesday, Jan. 8, 2013, a day after the retailer announced that chairman and hedge fund billionaire Edward Lampert will take over the role of CEO. The investor queasiness came even as the Hoffman Estates, Ill.-based company offered an update on holiday sales that showed some improvements at its Sears stores. Overall, the company still faces a long, uphill battle to turn itself around. (AP Photo/Alan Diaz)
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.

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