• Swings to Q2 profit of $152.8m from loss of $9.8m
  • Revenue fell 9.6% to $960.1m
  • Same store sales slipped 2.5%

Retailer Sears Canada has returned to profit during the second quarter, helped by a US$164m after-tax gain and higher same-store sales at its apparel and accessories business.

The company today (21 August) said net earnings reached $152.8m for the 13 weeks to 3 August, compared to a loss of $9.8m in the same period of last year. Excluding the after-tax gain, which related to store exit transactions, net losses stood at $11.2m.

Revenue, meanwhile, declined 9.6% to $960.1m from $1.1bn last year and sales store sales slipped 2.5%.

"The success we are seeing in the merchandise categories where we have focused most of our transformation efforts continues to be an indication that Canadians are responding positively to the changes they are seeing at Sears," said president and CEO Calvin McDonald.

"We continue to be particularly encouraged by the results in our apparel and accessories business which grew again in the quarter on a same-store basis and which has now experienced positive year-over-year same-store growth for three quarters in a row, performance that the company has not seen for many years."

Year-to-date earnings reached $121.6m, down 8.2% from $83.2m in the prior year, while revenue dropped 8.2% to $1.83bn, compared to $1.99bn last year.