This article was last updated on April 16, 2022
In an official announcement made on Tuesday, Sears Canada Inc. revealed that it has recorded a third-quarter loss due to numerous charges, along with surprising increase in the same-store sales for the first time in five years. The Toronto-based retailer is working hard to regain its market share in a highly competitive Canadian marketplace. It declared an extraordinary dividend totaling about 509 million Canadian dollars ($488 million), or C$5 a share.
According to the company’s announcement, its third-quarter loss increased up to C$48.8 million, or 48 Canadian cents a share, from a loss of C$21.9 million, or 22 Canadian cents, a year earlier. It was added that revenue fell from 6.4% to C$982.3 million, whereas on the other hand, same-store sales increased by 1.2%. The company highlighted that it had achieved its first quarterly same-store sales increase since 2008. In the official statement, Sears Canada Inc. alleged that “October was our strongest month of the quarter, during which we adjusted our plans to market conditions and experienced double-digit same-store-sales increases in both our Apparel & Accessories and Home & Hardlines categories. Our Direct business also grew substantially during the quarter.”
Sears Canada had previously revealed last month that it was selling leases on five stores, including its flagship Toronto locations, in light of its effort to shed assets and cut jobs as an attempt to turn around its operations. The company is undergoing its own three-year transformation to revamp itself in the highly competitive Canadian retail landscape, as it recently welcomed a new U.S.-based discount giant ravel, Target Corp., earlier this year.