Revenue down 6.9% at Sears Canada in FY'13

Net earnings for the 14-week fourth quarter this year were $39.9 million or 39 cents per share versus $41.0 million or 39 cents per share for the 13-week fourth quarter of the prior year. Included in the net earnings for the fourth quarter this year were pre-tax gains of $21.1 million related to a voluntary buyout program concerning post-retirement benefits and $8.6 million related to the sale of a joint venture interest, and a pre-tax charge of $12.6 million related to Transformation expenses.

Included in net earnings for the fourth quarter last year was a pre-tax charge of $14.4 million related to Transformation expenses. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the 14-week period ended February 2, 2013 was $62.4 million versus $101.8 million for the 13-week period ended January 28, 2012.

Total revenues for the 53-week period ended February 2, 2013 were $4,300.7 million versus $4,619.3 million for the 52-week period ended January 28, 2012, a decrease of 6.9%. Same store sales for the year decreased 5.6%. Net earnings for the year ended February 2, 2013 were $101.2 million or 99 cents per share versus a net loss of $50.3 million or 48 cents per share for the 52-week period ended January 28, 2012.

Included in net earnings for the year this year was a pre-tax gain of $167.1 million related to lease terminations and a charge of $12.6 million related to Transformation expenses. Included in the net loss for the year last year was a charge of $60.0 million related to Transformation expenses. Adjusted EBITDA for the 53-week period ended February 2, 2013 was $47.0 million versus $124.0 million for the 52-week period ended January 28, 2012.

Commenting on the fourth quarter, Calvin McDonald, President and Chief Executive Officer, Sears Canada Inc., said, "Although sales were lower than last year, our same store sales performance in the fourth quarter improved over the three prior quarters. Home electronics and Craftsman, which includes snowblowers and hardware, contributed to the majority of our sales decline.

“Though the positive sales trend in major appliances slowed, we continued to add market share. Of particular note was the positive same store sales growth of our apparel and accessories business in the quarter compared to the fourth quarter last year. Inventory quality at the end of the quarter improved compared to the same time last year, as a result of a significant reduction in out-of-season inventory."