Sears Canada is reporting a $91.6 million loss in its second quarter, which included severance and other costs associated with the retailer’s efforts to revitalize its business.
Last year’s second quarter was profitable due to a one-time gain of $67.2 million from the sale and leaseback of two logistics centres in Alberta and Ontario. No real estate gains were recorded in this year’s second quarter.
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Net loss in this year’s second quarter amounted to 90 cents per share, compared with net earnings of $13.5 million or 13 cents per share in last year’s second quarter.
Revenue and store sales were down for a variety of reasons, including fewer transactions of appliances and other big-ticket items due to the termination of a credit card agreement and less revenue than expected from a merchandise agreement.
Total revenue declined by 15% to $648.5 million, from $768.8 million, while same-store sales – those at outlets open for at least a year – declined by 5.5% overall.
Sears is currently undergoing a “strategic reinvention” in Canada that includes plans for renewed in-store and online shopping experiences and a refreshed consumer-facing brand.
