Sears Canada's 2Q net earnings jump 30.7%
By Michael J. Knell -- Furniture Today, September 1, 2008
TORONTO — Big-ticket items helped drive an uptick in same-store sales for Sears Canada during its second fiscal quarter, which also saw significant gains in the multi-channel retailer's bottom line.
Total revenues for the 13-week period ending Aug. 2 were C$1.42 billion, compared with C$1.44 billion for the 13 weeks ended June 30, 2007, a decrease of 1.6%.
Earlier this year, Sears Canada changed its fiscal year to match that of Sears Holding, its largest shareholder and operator of both Sears and Kmart in the United States. The fiscal year now ends on the Saturday closest to Jan. 31, instead of the Saturday closest to Dec. 31. Excluding the effect of the fiscal year change, revenues increased 0.5%.
Same-store sales increased 1.8% for the 13-week period ended Aug. 2 when compared with the 13-week period ended Aug. 4, 2007.
Net earnings for the second quarter were C$61.1 million or 56 Canadian cents per share, a 30.7% jump from the C$42.3 million or 39 cents per share in the second quarter last year, which ended June 30.
Total revenues for the 26-week period that also ended Aug. 2 were C$2.68 billion, a slight bump of 0.4% compared with the C$2.66 billion last year.
The company said that excluding the effect of the fiscal year change, revenues decreased 0.8% and same-store sales were flat.
Net earnings for the same 26 weeks, including unusual items, were C$124.2 million or C$1.15 per share compared with C$56.6 million or 52 cents per share for the comparable period, which ended June 30, 2007. Excluding unusual items, net earnings were C$95.9 million or 89 cents per share, more than double the C$47.4 million or 43 cents per share for the first half of fiscal 2007.
“Our same-store sales compared to last year headed in a positive direction during the quarter despite depressed consumer confidence and a tougher economy,” Sears Canada President and CEO Dene Rogers said. “Challenges in our soft lines were offset by improved performance in our big-ticket areas.”
