Sears Canada Inc posts 591million loss in first quarter as revenue drops

TORONTO — Sears Canada Inc. (TSX:SCC) announced on Wednesday a $59.1 million net loss for the first quarter amid falling revenue, which was down 9.7 per cent from last year.The loss amounted to 58 cents per share — which was less than during the same time last year when the struggling department store operator reported a net loss of $75.2 million or 74 cents per share.Overall revenue for the quarter ended May 2 fell to $697.2 million, down $771.7 million, mostly because of store closures.Same-store sales were down 4.3 per cent, measuring a decline at locations open at least a year.The company currently has 167 corporate stores, 197 Hometown stores, over 1,300 catalogue and online merchandise pick-up locations, 85 Sears Travel offices and a nationwide repair and service network.Sears Canada poaches Target clothing brands Cherokee and Liz LangeSears Canada gets exclusive rights to Wayne Gretzky clothing lineSears Canada Ron Boire said the decline in same-store sales was less than any quarter in 2014 but the company is working to improve its revenue and earnings.This year’s quarter was helped by a $5.1 million gain from a settlement of retirement benefits while last year’s first quarter included a $7.6-million non-recurring expense related to its corporate transformation efforts.After various adjustments in both years, Sears Canada’s first quarter loss was $50.5 million compared with a loss of $58.1 million last year. read more