OTTAWA: Sears Canada Inc. (SCC.TO, SRSC) reported Wednesday that its second-quarter net loss was C$91.6 million or 90 cents per share, compared to net earnings of C$13.5 million or 13 cents per share last year.
The latest results included transformation expenses of C$14.4 million primarily related to severance incurred, while prior-year’s results included a one-time gain on sale and leaseback transactions of C$67.2 million.
Revenue was C$648.5 million in the second quarter, a decline of 15.6% compared to the same quarter last year.
Adjusted EBITDA was a loss of C$66.1 million for the quarter this year. Excluding the impact of the termination of the credit card agreement, the effect of a weaker Canadian dollar, and the launch costs of Initium, Adjusted EBITDA would have improved by approximately C$11.6 million.
Executive Chairman, said, “The current performance of the business is unacceptable, but it was not entirely unexpected. The current management team has set about amassing a substantial cash position and significantly reducing operating expenses in order to create the runway to establish and execute a business plan to reinvent Sears Canada.”
