Finance, Operations, Dept. Store – Sears Canada more than doubles net loss in Q3

Toronto, Canada – The bad news continued for Sears Canada Inc. during the third quarter of fiscal 2014. Following the announcement by parent company Sears Holding that it would sell off most of its 51% ownership stake to shareholders and reports that J.P. Morgan Chase & Co. will end its agreement to issue credit cards for Sears Canada in November 2015, Sears Canada reported a net loss of $118.7 million, significantly larger than the $48.8 million net loss reported the same period a year earlier.

This marks the third straight quarter Sears Canada has posted a loss. Pre-tax impairment and transformation charges, as well as income tax expense, drove the growth in net loss. Total revenues shrank 15% to $834.5 million from $982.3 million, while same-store sales fell 9.5%.

"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, acting president and CEO, Sears Canada Inc. "This is the value proposition that resonates best with our customers, and centers on the middle market where Sears can be most successful. The Company has 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.