Sears Canada earnings jump as sales inch up
By Furniture Today Staff -- Furniture Today, August 26, 2007
Toronto — Sales were nearly flat but earnings jumped in the second quarter at Sears Canada, the company reported.
Big ticket items, including furniture and appliances, helped boost Sears Canada to a 1.1% gain in second-quarter sales, to C$1.44 billion. Same-stores sales rose 2.2%.
But net earnings rose to C$47.8 million or 44 cents per share, compared with C$27.7 million or 26 cents per share. The multi-channel retailer said that while total expenses were down 2%, its gross margin rate for the quarter was flat.
For the first half, sales edged up 0.5% to $2.67 billion and earnings climbed to C$64.9 million or 60 cents per share from compared to C$6.3 million or 6 cents per share.
"Our increase in revenues has shown improvement in both the quarter and the half, and we are pleased with the direction our same store sales have taken. Challenges in our women's apparel business in revenue and out-of-season inventory content were offset by improved performance in other departments, most notably in our big-ticket home and hardline areas," said Dene Rogers, president and CEO.
He said earnings before interest, taxes, depreciation and amortization, excluding unusual items, increased to $115.2 million in the second quarter from $101.4 million in 2006. For the first half, they were up 22.2% to $171.8 million.
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Sears Canada 2Q sales up a little, earnings up a lot
Jul 31, 2007
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