Feb 26 Struggling department store operator
Sears Canada Inc posted a fall in quarterly sales,
citing severe winter weather and power outages in the holiday
A major ice storm blanketed central and eastern Canada in
December, causing widespread damage, power failures, temporary
store closures and disruptions to travel and business.
Sears Canada, controlled by hedge fund billionaire Eddie
Lampert and his Sears Holdings Corp, lost over 220
store hours in December and January due to severe weather and
power failures, compared with about 40 hours a year earlier.
"Despite this, we continued to have a positive quarterly
same-store sales increase in our apparel and accessories
business, but it was not enough to offset the impact felt in our
home and hardlines businesses," Chief Executive Doug Campbell
said in a statement on Wednesday.
Last month, Canadian dollar-store operator Dollarama Inc
attributed the fall in December comparable-store sales
to severe winter weather.
Sears Canada said same-store sales fell 6.4 percent in the
fourth quarter ended Feb. 1, adjusted for an extra week a year
Total revenue fell to C$1.18 billion ($1.07 billion) in the
13 weeks ended Feb. 1 from $1.31 billion in the 14 weeks ended
Feb. 2, 2013.
The company's net income rose to C$373.7 million, or C$3.67
per share, in the quarter from C$39.9 million, or 39 Canadian
cents per share, helped mainly by a pretax gain related to early
lease terminations and amendments.
Sears Canada said in January that it would cut 7 percent of
The company's shares closed at C$13.30 on Tuesday on the
Toronto Stock Exchange. The stock has fallen about 27 percent in
the past three months.