Sears Canada posts smaller net profit in third quarter, revenues dip

By The Canadian Press

TORONTO - Sears Canada Inc. (TSX: SCC.TO) says a decrease in same-store sales due to low consumer confidence caused its profit to shrink from year-ago levels in the third quarter.

The retailer reported net earnings of $47.1 million or 44 cents per share for the quarter ended Oct. 31. That was down from a year-ago profit of $59.3 million or 55 cents per share.

Revenues totalled $1.3 billion, down from $1.4 billion last year.

Sears says its stores continued to feel the impact of retracted consumer spending as a result of increasing unemployment in a recession.

Same store sales, a measure of sales at stores open at least a year, decreased 6.3 per cent during the quarter, but the company added that total expenses for the quarter went down by 11.5 per cent from a year ago.

Sears also noted there was an unusual item gain in last year's third quarter of $1.1 million which had boosted earnings in 2008.

The Toronto-based retailer says it will be pushing its holiday season products in the fourth quarter to boost customer traffic and profitability.