Sears Canada Net Slips in Q4, Goes from Loss to Profit for Fiscal Year
TORONTO-Fourth-quarter net income for Sears Canada slipped 2.7 percent to C$39.9 million, while the department-store retailer was able to turn a $50.3 million net loss into a net profit of C$101.2 million for the fiscal year.
The Canadian dollar's value was virtually identical to the U.S. dollar's value for both the quarter and the fiscal year. Net sales in the quarter, which ended on Feb. 2, totaled C$1.3 billion, down 5 percent and including a same-store sales decrease of 3.8 percent. For the fiscal year, net sales were C$4.3 billion, off 6.9 percent and including a drop of 5.6 percent in same-store sales.
Calvin McDonald, Sears Canada's president and CEO, said the majority of the chain's sales drop occurred in home electronics and the various products under the Craftsman brand. Sales growth in major appliances slowed, but Sears Canada did pick up market share, McDonald said. that revenue and operating income were disappointing for last year, McDonald said Sears Canada is one "a three-year journey" to improved results. Several initiatives launched last year, including the redesigned Sears Home store in Ottawa and nine refurbished full-line stores, have received positive responses from customers, he said.