Sears Canada Net Loss Increases in Q3
TORONTO-Declining sales, rising expenses and non-recurring charges combined to increase Sears Canada's third-quarter net loss from C$21.9 million last year to C$48.8 million ($47.1 million) this year.
Net sales in the quarter, which ended on Nov. 2, fell 6.4 percent to C$982.3 million ($947.7 million). Same-store sales rose 1.2 percent, marking the first quarterly gained in same-store sales since 2008, according to Doug Campbell, Sears Canada's president and CEO. Campbell added that several product categories--including home and hardlines, and apparel and accessories--posted double-digit same-store increases in the quarter.
Selling, general and administrative expenses edged up 1.5 percent in dollars and jumped 340 basis points as a percentage of sales, to 43.6 percent. Gross margin declined 11 basis points to 37.2 percent. The non-recurring charges--which included severance costs related to internal restructuring, an asset impairment charge and a goodwill impairment charge--totaled $42.8 million.
Campbell said that while Sears Canada is "pleased with our results for the quarter, more work lies ahead of us to create a platform for sustainable growth. We are reestablishing fundamentals across the enterprise to ensure we have a solid foundation on which to continue growing the business."