* Announces special dividend of C$5 per share
* Same-store sales up for the first time since 2008
* Third-quarter loss C$0.48/share vs C$0.22 year earlier
* Records one-time charges of C$42.8 mln
* Shares rise as much as 18 pct
Nov 19 Struggling department store chain Sears
Canada Inc is set to give a big payout to shareholders
despite a bigger quarterly loss due to one-time charges related
to restructuring and asset impairment.
Sears Canada shares rose as much as 18 percent on Tuesday
morning on the Toronto Stock Exchange after the company
announced the special dividend and reported its first rise in
quarterly same-store sales since 2008.
The company is in the middle of a three-year turnaround
plan, introduced in 2012 to boost sales and reclaim market share
at a time when U.S. retailers such as Target Corp are
building up their presence in Canada.
The special dividend payment of C$5 per share, or C$509
million, reflected gains from recent asset sales and was largely
expected by analysts.
The dividend will be payable on Dec. 6 to shareholders of
record as of Dec. 2.
Sears Canada, 51 percent-owned by Sears Holdings Corp
, closed stores, sold real estate and shed assets in the
third quarter ended Nov. 2.
Excluding one-time charges, the company's expenses fell by
8.6 percent in the three months.
Adjusted earnings before interest, taxes, depreciation and
amortization nearly doubled to $7.3 million.
Sales rose 1.2 percent at established stores, helped by
strong sales of apparel, accessories and home products.
October was the company's strongest month in the quarter,
said Chief Executive Doug Campbell, who took over from Calvin
McDonald in September.
The Toronto-based company also sells baby care items and
appliances such as coffee makers, blenders and microwaves. The
company's private apparel brands include Jessica and Attitude.
Sears Canada's net loss widened to C$48.8 million, or 48
Canadian cents per share, in the third quarter, from C$21.9
million, or 22 Canadian cents per share, a year earlier.
The loss included a charge of C$42.8 million.
Sears Canada said this month that it would sell its 50
percent stake in eight Canadian properties for about C$315
The company said in October that it would close its flagship
downtown Toronto store and end the leases on four other
locations in a C$400 million deal.
U.S. retailer Target opened its first Canadian stores in
March and plans to have 124 by the end of the year.
Sears Canada shares were up 7 percent at C$17.98 on Tuesday
on the Toronto Stock Exchange.