Sears Canada Inc announced its unaudited third quarter results. Total revenues for the 13-week period ended September 30, 2006 were $1.409 billion compared to $1.487 billion for the 13 weeks ended October 1, 2005, a decrease of 5.2 percent.
The decrease in revenues was primarily due to the sale of the Credit and Financial Services operations in the fourth quarter of 2005. Same store sales increased 1.2 percent.
The Company moved some key promotional events from the fourth quarter of 2005 to the third quarter this year for strategic reasons, and believes that the majority of the same store sales increase is due to the change in the timing of these promotional events.
Net earnings for the third quarter, including non-comparable items, were $37.8 million or 35 cents per share compared to a loss of $37.4 million or 35 cents per share in the same quarter last year.
Net earnings for the quarter, excluding non-comparable items, were $41.1 million or 38 cents per share compared to $20.8 million or 19 cents per share in the quarter last year.
Gross margins for the quarter increased over the equivalent period in 2005 by 250 basis points, as a result of a higher balance of sale in apparel and improved inventory management. Inventory levels were 1.5 percent lower than the same period last year.
Total expenses were reduced by 13.7 percent, approximately 60 percent of which is related to the sale of the Credit and Financial Services operations.
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