November 16, 2010 / 12:57 PM / in 7 years

UPDATE 2-Sears Canada profit falls on weak sales

* Q3 EPS C$0.17 vs C$0.44 year earlier

* Revenue, same-store sales down 8 pct (Adds details)

TORONTO, Nov 16 (Reuters) - Retailer Sears Canada SCC.TO said on Tuesday its third-quarter profit fell 61 percent as weaker consumer confidence weighed on sales.

Sears Canada, which is now 90.4 percent owned by Sears Holdings Corp (SHLD.O), said net income fell to C$18.5 million ($18.3 million), or 17 Canadian cents a share, from C$47.1 million, or 44 Canadian cents, a year earlier.

Revenue dropped 8 percent to C$1.20 billion. In the third quarter, same-store sales, or sales at stores opened more than a year, also fell 8 percent.

“The results are very disappointing,” Chief Executive Dene Rogers said in a statement.

Rogers said sales were hurt by new sales tax regime in Ontario and British Columbia, rising interest rates and high unemployment rate, which led to a dip in consumer confidence.

Shares of Sears Canada, which owns a network of 196 corporate stores, 260 dealer stores and 33 home improvement showrooms, closed at C$39.47 on Monday on the Toronto Stock Exchange. The stock has lost 16 percent of its value so far this year.

$1=$1.01 Canadian Reporting by Bhaswati Mukhopadhyay; Editing by Frank McGurty

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