August 15, 2012 / 11:58 AM / 5 years ago

UPDATE 1-Sears Canada loss widens as sales fall

* Quarterly loss $0.10 vs. $0.00 year earlier

* Revenue falls 9 percent to C$1.05 billion

* Same-store sales fall 7.1 percent

Aug 15 (Reuters) - Sears Canada Inc reported a wider loss in what the Canadian retailer called a difficult quarter on Wednesday, as sales at established stores dropped again.

Sales of outdoor power equipment fell off dramatically with the onset of warm, dry weather, and the company said its weekend business is underperforming.

Same-store sales, an important measure for retailers, fell 7.1 percent in the second quarter ended July 28, following a 5.8 percent decline in the same quarter last year.

“While we are not pleased with our quarterly sales results, we continued to implement key transformation initiatives,” said Chief Executive Calvin McDonald in a release.

McDonald is one year into his three-year turnaround plan, which includes refocusing on categories in which Sears is strongest.

The company said sales rose in two of those categories, major appliances and mattresses. Weekday sales of regularly priced merchandise also rose.

The company, majority-owned by Sears Holdings Corp, said net loss was C$9.8 million ($9.9 million), or 10 Canadian cents per share, compared with a loss of C$200,000, or break even per share, a year earlier. Revenue fell 9 percent to C$1.05 billion for the quarter.

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