Home / Knowledge / News / Apparel/Garments / Sears Canada posts disappointing sales in Q2 FY'12
Sears Canada posts disappointing sales in Q2 FY'12
16
Aug '12
Sears Canada Inc. announced its unaudited second quarter results.  Total revenues for the 13-week period ended July 28, 2012 were $1.050 billion compared to $1.148 billion for the 13 weeks ended July 30, 2011, a decrease of 8.5%.  Same store sales decreased 7.1% over the same periods.

The net loss for the second quarter was $9.8 million or 10 cents per share compared to a net loss of $0.2 million or nil earnings per share for the 13-week period ended July 30, 2011. 

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and Non-Operating Activities) for the quarter this year was $17.8 million versus $30.0 million in the same 13-week period last year.  Adjusted EBITDA is a non-IFRS measure; please refer to the table attached for a reconciliation of net (loss) earnings to Adjusted EBITDA.

Total revenues for the 26-week period ended July 28, 2012 were $1.965 billion compared to $2.140 billion for the 26-week period last year, which ended July 30, 2011, a decrease of 8.2%.  Same store sales decreased 6.7% over the same periods.

Net earnings for the first half of 2012 were $83.2 million or 81 cents per share compared to a net loss of $47.2 million or 45 cents per share for the 26 weeks ended July 30, 2011.  Included in earnings for the first half of this year was a gain of $164.3 million representing the pre-tax gain on the early surrender and return of leases on three properties.  Adjusted EBITDA for the first half of the year was ($12.3) million versus $7.7 million for the same period last year.

"While we are not pleased with our quarterly sales results, we continued to implement key transformation initiatives," commented Calvin McDonald, President and Chief Executive Officer, Sears Canada Inc.

"We are encouraged by the results of the four stores in Ontario which received significant refreshes and re-opened at the end of May to customer accolades.  Of note was the performance in our apparel departments which received a significant portion of our investment.  We are exploring other possible locations across Canada to refresh.

"Also during the quarter, we continued to see sales increases of regularly priced merchandise in the Monday to Friday periods, supporting our price rebalancing initiatives begun in February of this year.  We had sales increases in Major Appliances and Mattresses, two core hero categories which we have identified as key to our success. 

“In fact, sales following the opening of our new Sears Home location in Ottawa, the largest Sears Home store in the country, exceeded our expectations and the Sears Home format experienced year over year sales increases.  I am pleased with our management of both our inventory levels, ending the quarter $66 million below last year with less aged content, and our expenses, staying in line with our revenue trend.

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search