TORONTO: Sears Canada said revenue fell for the fifth consecutive year in fiscal 2015, although a pay-out from its previous credit card supplier narrowed its net loss considerably.
The multi-channel retailer also reported sales declined in its home and hardlines segment, which includes furniture, mattresses and major appliances.
For the fiscal year ended Jan. 30, revenues totalled C$3.15 billion, down 8.1% from C$3.42 billion for the prior year.
Total same-store sales were down 2.3% for the year, while for the core group, they were off 0.6%.
Sales for the home and hardlines segment were down 7.7%. Total same-store sales for the segment were off 0.7%, but were essentially flat for the core group.
The net loss for the year was C$67.9 million or 67 cents per share, an improvement over the prior year’s net loss of C$338.8 million or C$3.32 per share. The improvement was attributed primarily to a payment of C$170.7 million related to the termination of its credit card agreement with J.P. Morgan Chase.
The merchant said its home and hardlines segment accounts for 40% of its annual business. The balance is generated by its apparel and accessories segment.
Revenue for the home and hardlines segment fell 12.2% from the previous year, the company reported. Its total same-store sales 3.5%, while for the core group, same-store sales were down 5.1%.
Revenue for the 13 weeks ending Jan. 30 was C$887.6 million, down 8.7% from C$972.5 million for the comparable period of the prior fiscal year.
Same-store sales were off 1.6%, but same-store sales for core group of 95 full-line department stores and 41 Home stores was down 0.8%.
The net loss for the quarter was C$30.9 million or 30 Canadian cents a share, an improvement from the prior period’s net loss of C$123.6 million or C$1.21 per share.
During the 2015 fiscal year, Sears Canada closed two full-line department stores, six Sears Home stores, four Outlet stores, its sole remaining Appliances and Mattresses store, 76 of its independently owned and operated Hometown stores, two corporate Corbeil outlets, as well as 12 travel offices and 131 catalog and online merchandise pick-up locations. It also opened nine catalogue and online merchandise pick-up locations.
The company also noted its cost reduction program had cut recurring operating expenses by at least C$100 million during 2015.
“We are making real and meaningful changes at Sears Canada to create a new Sears Canada organization,” said Brandon G. Stranzl, who was named executive chairman last year. “We are working to create Sears Canada 2.0.”
He said Sears Canada has already created a specialized retail innovations lab mandated with modernising the company’s commerce platform.
“The innovations lab is an open-concept, creative environment, physically located away from head office operations to facilitate the generation of new ideas and focus on delivering customer-centric, digital solutions,” Stranzl said. “This lab will allow Sears Canada and its partners to work in close collaboration and foster a culture of innovation.”
He also noted the company has strengthened its leadership team over the past nine months, including the appointment of Carrie Kirkman as president and chief merchant.
At the end of the fiscal year, Sears Canada operated 95 full-line department stores, 41 Sears Home stores, 125 Sears Hometown stores and 33 Corbeil appliance stores, as well as six distribution centers, 84 Sears Travel offices and 1,213 catalog and online purchase pick-up locations.
