UPDATE 2-Sears Canada gives big payout, one-time charge widens loss

Tue Nov 19, 2013 11:01am EST
 
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* Announces special dividend of C$5 per share

* Same-store sales up for the first time since 2008

* Third-quarter loss C$0.48/share vs C$0.22 year earlier

* Records one-time charges of C$42.8 mln

* Shares rise as much as 18 pct

Nov 19 (Reuters) - Struggling department store chain Sears Canada Inc is set to give a big payout to shareholders despite a bigger quarterly loss due to one-time charges related to restructuring and asset impairment.

Sears Canada shares rose as much as 18 percent on Tuesday morning on the Toronto Stock Exchange after the company announced the special dividend and reported its first rise in quarterly same-store sales since 2008.

The company is in the middle of a three-year turnaround plan, introduced in 2012 to boost sales and reclaim market share at a time when U.S. retailers such as Target Corp are building up their presence in Canada.

The special dividend payment of C$5 per share, or C$509 million, reflected gains from recent asset sales and was largely expected by analysts.   Continued...