Sears Canada's same-store sales rise for first time in two years

Thu Dec 3, 2015 7:41am EST
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(Reuters) - Canadian department store operator Sears Canada Inc (SCC.TO: Quote) SRSC.O said its same-store sales rose 0.4 percent in the third quarter - the first rise in two years - helped by higher sales of major appliances, furniture and mattresses.

The company, whose largest shareholder is Sears Holdings Corp (SHLD.O: Quote) Chief Executive Eddie Lampert and his hedge fund, has closed stores and cut jobs as it has lost market share to aggressive rivals such as Wal-Mart Stores Inc (WMT.N: Quote).

Toronto-based Sears Canada said on Thursday it was aiming for additional cost savings of C$30 million-C$40 million on an annualized basis in the current quarter.

It said it expected to incur a one-time cost of C$15 million-C$20 million for the entire cost reduction program.

The retailer's net loss narrowed to C$53.2 million ($39.9 million), or 52 Canadian cents per share, in the three months ended Oct. 31, from C$118.7 million, or C$1.16 per share, a year earlier.

The company, which traces its Canadian roots back to the early 1950s, said its operating loss fell to C$49.7 million from C$88.7 million in the same quarter last year.

Sears Canada's shares have fallen 4.3 percent this year, closing at C$10.76 on Wednesday.

($1 = C$1.33)

(Reporting by Anet Josline Pinto and Darshana Sankararaman in Bengaluru; Editing by Kirti Pandey and Ted Kerr)

People walk past the main Sears store in downtown Vancouver, British Columbia February 23, 2011.   REUTERS/Andy Clark