Sears Canada revenues up 4.5%
By Furniture Today Staff -- Furniture Today, October 24, 2004
Toronto — Sears Canada said third-quarter revenues increased 4.5% to C$1.5 billion from the comparable period last year, while net earnings also rose 4.5% to C$14 million. Same-store sales for the 13-week period ended Oct. 2 increased 1.1% on a comparable-week basis.
Excluding non-comparable items, such as the sale of receivables and restructuring charges, net earnings were C$19.4 million, up 60% from C$12.1 million in last year's third quarter.
President and CEO Brent Hollister said, "While the third quarter showed earnings improvement, it did not meet our expectations. Due to the retail calendar, last year was a 53-week year; therefore, this year's quarter was one week later.... This shifting resulted in an estimated C$60 million additional revenue in the quarter. We estimate that, on a comparable week basis, our earnings, excluding non-comparable items, were flat to last year."
"Sales were strong in furniture and sporting goods," he said, adding that apparel sales were hurt by a cool summer.
Sears Canada is this country's largest single retailer and second-largest furniture and bedding merchant.
Hollister said the quarter's gross margins were off 179 basis points because of increased promotional activity. Inventories on Oct. 4 were down 6% over last year, while expenses as a percentage of revenue dipped 183 basis points, thanks to tight control of payroll and marketing expenses.
Revenues for the 39 weeks ended Oct. 2 were C$4.3 billion, up 3.2% from C$4.2 billion in the 39 weeks ended Sept. 27, 2003. On a comparable-week basis, allowing for the one-week calendar shift, same-store sales climbed 3.1%. Net earnings for the nine months were C$39.1 million, up 3.4% from last year's C$37.8 million.
Sears Canada has lowered its full-year earnings guidance to a range of C$1.15 to C$1.35 per share, before non-comparable items, Hollister said.
In the fourth quarter, the company expects to open a Sears Home store in Saskatoon, Saskatchewan, bringing the total to 48.
| Sears Canada (a) | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| 13 weeks ended 10/2 | 2004 | 2003 | Change |
| (a) In Canadian dollars. (b) Includes pretax special charge of C$4.6 million in the 2004 13 weeks and C$3.5 million in the 2004 39 weeks. |
|||
| Revenues | C$1,497,300,000 | C$1,433,300,000 | 4.5% |
| Operating income | 77,700,000 | 80,700,000 | (3.7%) |
| Net income | (b)14,000,000 | 13,400,000 | 4.5% |
| Earnings per share | 0.13 | 0.12 | 8.3% |
| 39 weeks ended 10/2 | 2004 | 2003 | Change |
| Revenues | C$4,315,400,000 | C$4,183,600,000 | 3.2% |
| Operating income | 214,300,000 | 230,300,000 | (6.9%) |
| Net income | (b)39,100,000 | 37,800,000 | 3.4% |
| Earnings per share | 0.36 | 0.35 | 2.9% |
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Sears Canada revenues up 4.5%
Oct 25, 2004
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