CANADA: Sears Canada Q4 profit declines 2.7%
- Q4 net income down 2.7% to CAD39.9m (US$38.9m) from CAD41m
- Revenue declined 5% to CAD1.3bn from CAD1.37bn
- Same store sales declined 3.8%.
Retailer Sears Canada has posted a decline in its fourth-quarter profit despite positive same store sales growth in its apparel and accessories business.
Although total same store sales slipped 3.8% during the quarter, the decline was smaller than the same period last year when same store sales fell 7.4%.
Sears Canada president and CEO Calvin McDonald noted that "same store sales performance in the fourth quarter improved over the three prior quarters."
He added: "Of particular note was the positive same store sales growth of our apparel and accessories business in the quarter compared to the fourth quarter last year. Inventory quality at the end of the quarter improved compared to the same time last year, as a result of a significant reduction in out-of-season inventory."
However, the positive apparel and accessories same store sales growth failed to offset a decline in home electronics and hardware sales.
"While the revenues and adjusted EBITDA in 2012 were disappointing, we have said from the outset that our transformation is a three-year journey," McDonald emphasised.
Full-year net earnings reached CAD101.2m for the quarter to 2 February, compared to a loss of CAD50.3m last year. Revenues reached CAD4.30bn, down 6.9% from CAD4.62bn the previous year.
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