One week after announcing Sears Holdings Corporation announced it was considering selling off its stake in Sears Canada, the Canadian segment announced that its first-quarter loss was $75.2 million, up from $31.2 million in 2013’s first quarter.
In addition, revenue and same-store sales have dropped. Revenue decreased 11% to $771.7 million, compared with $867.1 million in 2013’s first quarter. Same-store sales were down 7.6%
Douglas Campbell, president and chief executive officer of Sears Canada Inc., said revenue was affected by unseasonably poor weather.
“Sales of Spring merchandise were below last year, as winter-like weather was prevalent in most parts of the country well into the new season with cooler temperatures and significantly more snow in many areas,” Campbell said.
“However, we took advantage of the extended winter and cleared a significant quantity of fall and winter carryover, virtually emptying our stockrooms and getting it in front of the customer.”
In January 2014, Sears Canada announced it would be laying off 1,600 employees by September. The company had already laid off 800 employees around the country, including 79 in Vancouver, in November 2013, and closed a number of locations, including the Richmond Centre location in October 2013.
The company has 176 corporate stores and 234 Hometown stores, as well as more than 1,400 catalogue pick-up locations.