Sears Canada reports loss, revenue slides 12 percent

Wed Aug 20, 2014 8:09am EDT
 
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(Reuters) - Struggling department store chain Sears Canada Inc (SCC.TO: Quote) reported its ninth loss in 14 quarters as sales continued to decline.

Same-store sales fell 6.8 percent in the second quarter ended Aug. 2. Same-store sales at Sears's home and hardlines business dropped 9.3 percent.

The company blamed the slump partly on a relatively cold spring.

Total revenue fell 12 percent to C$845.8 million, said Sears Canada, whose sales have declined for six straight years.

The company, which traces its Canadian roots back to the early 1950s, has lost market share to aggressive U.S. rivals such as Wal-Mart Stores Inc (WMT.N: Quote) and Target Corp (TGT.N: Quote).

It has eliminated about 3,000 positions since November, closed many stores and sold several of its most valuable leases over the past year, including one for its flagship store at Toronto Eaton Center.

Hedge fund billionaire Eddie Lampert and his Sears Holdings Corp (SHLD.O: Quote) said in May they were looking to sell their 51 percent stake in Sears Canada.

Buyout firm Sycamore Partners was considering a bid for Sears Canada, New York Post reported this month.

Second-quarter operating loss widened to C$64.2 million from C$5.3 million a year ago, Sears Canada said.   Continued...

 
A customer enters the closing down Sears store is shown in downtown Vancouver, British Columbia September13, 2012.  REUTERS/Andy Clark