Major retailer Sears Canada Inc on Monday lifted its profit forecast for the year on the back of lower markdowns but warned festive sales were weak.

The department store chain raised its full-year operating profit outlook to between $1.20 and $1.30 a share from its original forecast of $1.10 a share.

Sears posted a 3.2 per cent slip in November same-store sales and said total sales fell almost four per cent to C$622.3 million from C$647.5m in the year-ago period.

"Although the sales environment remains difficult, our improvement in profitability has exceeded our expectations," commented chairman and CEO Mark Cohen.