May 16, 2012 / 11:49 AM / in 5 years

Sears Canada posts profit on lease terminations gain

May 16 (Reuters) - Sears Canada Inc reported a first-quarter profit, helped by a one-off gain on lease terminations and lower costs.

The department store chain, majority-owned by Sears Holdings Corp, said net income was C$93.1 million ($92.7 million), or 91 Canadian cents a share, compared with a loss of C$47 million, or 45 Canadian cents, a year earlier.

Earnings in the quarter included a gain of C$164.3 million on lease terminations of three stores.

Revenue fell 8 percent to C$915.1 million. Sales at established stores, or those at stores open at least a year -- a key measure for retailers -- fell 6.3 percent.

“The company has prudently managed expenses during the quarter resulting in operating expense reductions of 5.9 percent compared to the first quarter of last year,” CEO Calvin McDonald said in a statement.

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