Sears Posts Modest Turnaround
CBJ — There is finally cause to celebrate at Sears Canada after an increase of sales by 0.4% in the third quarter, marking the first time in two years that sales have moved up rather than down.
Sales in appliances, furniture and mattresses drove the bottom line.
Toronto-based Sears Canada is looking to save between $30 million-$40 million on an annualized basis in the current quarter.
It said it expected to incur a one-time cost of $15 million-$20 million for the entire cost reduction program.
The retailer’s net loss narrowed to $53.2 million, or 52 cents per share, in the three months ended Oct. 31, from $118.7 million, or $1.16 per share, a year earlier.
The company, which traces its Canadian roots back to the early 1950s, said its operating loss fell to $49.7 million from $88.7 million in the same quarter last year.
Sears Canada’s shares have fallen 4.3% this year, closing at $10.76 on Wednesday.