Sears Canada 3Q revenues dip 2.9% but earnings rise 15%
Same-store sales slip 3.6%; CEO cites more cross-border shopping
Michael J. Knell -- Furniture Today, October 29, 2007
TORONTO — Sears Canada last week became the first major Canadian retailer to blame the strengthening Canadian dollar for slumping sales when it reported a 2.9% dip in third-quarter revenues.
President and CEO Dene Rogers attributed at least some of that drop to increased cross-border shopping by Canadians, whose dollar now buys more in the United States. He also cited unseasonably warm weather in many parts of the country, which dampened apparel sales.
In the 13 weeks ended Sept. 29, Sears Canada posted revenues of C$1.37 billion, compared with C$1.41 billion in last year’s third quarter. Same-store sales — at full-line, Sears Home, Sears dealer and Corbeil appliance stores — slipped 3.6%, although gross margins improved slightly.
Net earnings in the latest quarter soared 178% to C$105.2 million, but much of that came with a one-time gain of C$58 million from the sale of Sears Canada’s headquarters building in Toronto. The main office has moved to the Toronto Eaton Center.
Excluding all one-time items, earnings in the latest quarter grew 15% to C$47.2 million, or 45 cents per share.
In the nine months, revenues were essentially flat at just over C$4 billion. Same-store sales slipped 0.1%. Net earnings, excluding one-time items, rose to C$102.9 million from C$60.6 million last year.
Sears Canada sales down 12% in quarter
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08/31/2008Sears Canada revenue down slightly
02/07/2007
