Sears Canada’s third-quarter loss more than doubled as sales saw a double-digit decline.
In the three months ended Nov. 1, the net loss grew to 118.7 million Canadian dollars, or $107.4 million, from 48.8 million Canadian dollars, or $45.2 million. Excluding special items, interest, taxes, depreciation and amortization, the adjusted ebitda loss was 19.4 million Canadian dollars, or $17.6 million, versus an adjusted ebitda profit of 7.3 million Canadian dollars, or $6.8 million, in the 2013 quarter.
Revenues dropped 15 percent to 834.5 million Canadian dollars, or $755.2 million, from 982.3 million Canadian dollars, or $910.6 million, while same-store sales decreased 9.5 percent during the period.
Sears Canada said a portion of the decline in revenues was attributable to closed stores as a result of early lease terminations and the sale of certain joint arrangement interests in the year-ago period.
U.S. dollar figures have been converted at average exchange for the periods to which they refer.
“These results are disappointing, and the management team is focused on making Sears Canada successful first and foremost by building on its relationship with Canadians by providing great fashionable product made of high quality at affordable prices,” said Ron Boire, who was appointed acting president and chief executive officer of Sears Canada last month. “This is the value proposition that resonates best with our customers and centers on the middle market where Sears can be most successful.”
He said the company had “done well at managing expenses year to date and maintaining a strong balance sheet, and we are now working at growing our top line to have our sales match the high level of loyalty and support that Canadians have for the Sears brand.”
Sears Holdings Corp. is reducing its stake in the Canadian operation from 51 percent. On Monday, Sears Canada and JPMorgan Chase said that their credit card arrangement would be discontinued after it expires next November.