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.
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.