Sears Canada (TSX:SCC) has announced its fourth quarter results for 2014, and things are not looking up for the beleaguered retail chain.
The company had revenue of $972.5 million for the quarter, which is a 17.7% decline compared to the same period last year. Net loss was $123.6 million, compared with net earnings of $373.7 million last year. Loss per share was $1.21, compared with per share earnings of $3.67 last year and considerably worse than analysts’ expectations of a $0.03 loss per share.
While the company said the drop in revenue was due in most part to the stores closed over the past year, there was also a 9.1% drop in same-store sales. This was due to a 10.7% drop in apparel and accessories sales and an 8% decrease in home and hardlines products sales.
For fiscal 2014, revenue fell 14.2% to $3.4 billion compared with 2013. Loss per share was $3.32, compared with per share earnings of $4.38 last year. Same-store sales fell 8.3% for the year.
Company president and CEO Ronald Boire, who has been on the job less than a month, called the results disappointing.
“The management team remains focused on building on its relationship with Canadians by providing great fashionable product made of high quality at affordable prices with great service,” Boire said. “Our sights are set on this value proposition and connecting with more Canadians than ever before.
“In addition, we are accelerating implementation of key initiatives related to product development and system infrastructure while continuing to focus on prudent management of expenses, investment of inventory and efficiency of our network.”
Fiscal 2014 was not easy for the retail giant. In January 2014, the company announced 1,600 layoffs across the country, just months after closing five stores across Canada – including the Richmond Centre location – and laying off 1,800 employees, including 78 at its Vancouver service centre.
In September, former president and CEO Douglas Campbell announced his resignation after one year on the job. In October 2014, parent company Sears Holdings said it would be selling most of 51% stake in the Canadian arm.
As of press time, shares of Sears Canada were trading at $12.48 per share, down 0.95%.
