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Sears Canada Posts Same Store Sales Increase For Q3

Tuesday November 19th, 2013 - 12:42PM

Sears Canada Inc. announced its unaudited third quarter results, which included total revenues for the 13-week period ended November 2, 2013, of  $982.3 million compared to $1,049.4 million for the 13-week period ended October 27, 2012, a decrease of 6.4%. Same store sales increased by 1.2% during the 13-week period.

"This is the first quarterly same store sales increase for the company since 2008," said Doug Campbell, president and CEO, Sears Canada Inc. "October was our strongest month of the quarter, during which we adjusted our plans to market conditions and experienced double-digit same store sales increases in both our Apparel & Accessories and Home & Hardlines categories. Our Direct business also grew substantially during the quarter. When we exclude the $42.8 million of non-recurring items taken in the quarter, we reduced expenses by 8.6% versus last year. This demonstrates the progress we are making in executing on the value levers that most directly drive our business: merchandising value and efficiency value."

He continued: "While we are pleased with our results for the quarter and October in particular, more work lies ahead of us to create a platform for sustainable growth. We are reestablishing fundamentals across the enterprise to ensure we have a solid foundation on which to continue growing the business. Most importantly, we are focusing on creating long-term value by providing quality products and services that Canadians expect from Sears when and where they want them at prices that provide great value."

Adjusted EBITDA for the third quarter of 2013 was $7.3 million compared to $3.9 million for the third quarter last year. The net loss for the third quarter of 2013 was $48.8 million or 48 cents per share compared to a net loss of $21.9 million or 22 cents per share for the third quarter last year. 

Total revenues for the 39-week period ended November 2, 2013 were $2809.5 million compared to $3039.3 million for the 39-week period ended October 27, 2012, a decrease of 7.6%. Same store sales decreased by 1.2% during the 39-week period.

Adjusted EBITDA for the 39-week period ending November 2, 2013 was $17.7 million versus $6.0 million for the 39-week period last year which ended October 27, 2012. Net earnings for the 39-week period this year were $72.8 million or 71 cents per share compared to $61.3 million or 60 cents per share for the 39-week period last year.