Beleaguered Sears Canada (TSX:SCC) has had a rough year, and the company’s third-quarter results announced November 18 do nothing to lift its profile.
The retail chain announced a net loss of $119 million in Q3 2014. This is almost 2-and-a-half times the loss seen in the same period last year of $49 million. Same store sales fell 9.5%. Revenue fell 15% to $835 million from $982 million last year, which the company said is due in large part to the number of stores closed over the past year.
Year-to-date, the company’s net loss was $215 million – almost triple the $73 million loss seen in the same period in 2013.
“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,” Ron Boire, Sears Canada’s acting president and CEO.
“This is the value proposition that resonates best with our customers, and centers on the middle market where Sears can be most successful.”
He went on to say that the company has been doing a good job of managing expenses throughout 2014.
Boire has only been working in this role for the past few weeks. In September Douglas Campbell announced he was resigning after working as the retail chain’s president and CEO for a year.
The results come a day after Sears Canada and JP Morgan Chase announced they will be ending their relationship. JP Morgan Chase services the Sears Card and MasterCard credit card programs.
Sears Canada has 174 corporate stores across Canada. In addition, the company has 207 Hometown locations, 96 Sears Travel offices and more than 1,300 catalogue and online pickup depots.
