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Sears Canada posts weak sales during holiday shopping season, steady Q4 results

By: The Canadian Press

Wednesday, Feb. 27, 2013 at 11:32 AM | Comments: 0

People wait for Sears to open in downtown Vancouver, September 21, 2012. THE CANADIAN PRESS/Jonathan Hayward

TORONTO - Sears Canada Inc. (TSX:SCC) said profits remained steady in the fourth quarter compared with a year earlier as one-time items offset a decline in sales during the holiday shopping season.

The Toronto-based retailer reported Wednesday it had $39.9 million of net earnings or 39 cents per share in the 14-week period ended Feb. 2.

The results were practically unchanged from a year earlier when the company had $41 million of net income during a shorter, 13-week period ended January 28, 2012.

However, revenue and same-store sales declined in the important holiday shopping period. The national retailer's revenue fell to just under $1.3 billion — down about $60 million from a year earlier.

Same-store sales fell 3.8 per cent from a year earlier.

President and chief executive Calvin McDonald said the company, which is in the midst of attempting a major turnaround, continues to push ahead with its three-year transformation plan.

"Although sales were lower than (the same time) last year, our same-store sales performance in the fourth quarter improved over the three prior quarters," he said in a release.

"Home electronics and Craftsman, which includes snowblowers and hardware, contributed to the majority of our sales decline."

The retailer's profit in the latest quarter received support from two special items — a $21.1-million gain related to a voluntary buyout program and an $8.6-million gain related to the sale of its share of a joint venture.

Adjusted earnings, excluding those and several other items, fell to $62.4 million from $101.8 million.

Sears Canada shares were down 3.87 per cent, or 36 cents, at $8.94 Wednesday morning on the Toronto Stock Exchange.

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