Sears Canada sales decline 3.2% in fiscal 4Q
Michael J. Knell -- Furniture Today, April 6, 2011
TORONTO — Sagging confidence and soaring household debt dragged down sales and profitability at Sears Canada in the fourth quarter and fiscal year, with the multi-channel retailer noting sales drops for many big-ticket items.
Revenues for the 13 weeks ended Jan. 29 were C$1.48 billion, down 3.2% from the comparable period a year earlier, as same-store sales fell 3.3%.
Net earning were C$92.2 million or 87 cents per share, down 26.3% from C$126.9 million or C$1.18 per share a year ago.
The company also noted that operating EBITDA (earnings before interest, taxes, depreciation and amortization) for quarter fell to C$147.1 million from C$222.9 million last year.
Adding to net earnings was a post-tax gain of C$14 million from the sale of unused land in Burnaby, British Columbia, and Lachenaie, Quebec. In the same quarter last year, there was a nonoperating, after-tax gain of C$1.3 million from the sale of a joint venture in Sorel, Quebec.
Revenues of C$4.96 billion for the 52 weeks ended Jan. 29 were down 4.7% from the previous fiscal year. Same store sales decreased 4%.
Net earnings for the fiscal year were C$149.8 million or C$1.40 per share, down 32.5% from C$234.7 million or C$2.18 per share for the prior year.
Sears Canada said it ended the year with cash and investments totalling C$441.3 million. Total debt at year's end was reduced to C$136.1 million from C$350.7 million a year earlier.
"The 2010 results were disappointing due to several external factors including increasing household debt at an all time high, which affects sales in major expense items such as appliances, the effect of a warm fall that impacted apparel and categories such as snow blowers, and continued deep discounting by the industry in general," Dene Rogers, president and CEO, said in a statement.
"Nevertheless, we take responsibility for our results and are committed to improving our performance in 2011," he added.
Sears Holding, the U.S.- based parent of Sears, Roebuck & Co and Kmart, owns about 91% of the outstanding shares in Sears Canada002E.
-
Sears Canada sales fall 7.1% in third quarter
Nov 22, 2011 -
Mattress Firm sales soar 40%
Jan 10, 2012
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
