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Sears Canada Q4 revenue $887.6 million

Staff writer |
Sears Canada announced results for the fourth quarter of fiscal 2015. Revenue was $887.6 million in the fourth quarter, a decline of 8.7% compared to the same quarter last year.

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Same store sales across all channels decreased by 1.6% compared to the same quarter last year. The difference between the decline in revenue and the decline in same store sales was primarily due to store exits since last year and declines in the company's Direct business.

Excluding three categories that represent less than 7% of our Q4 business, same store sales would have increased by 1.0%.

Same store sales for the company's core retail store network, which consists of its 95 full-line department stores and 41 Sears Home stores, decreased 0.8% for the fourth quarter.

Core retail same store sales increased by 2.9% in the Apparel and Accessories categories for the quarter and declined by 5.1% in Home and Hardlines categories.

The gross margin rate was 28.7% in the fourth quarter, as compared to 30.4% for the same quarter last year. Excluding the negative impact of foreign currency effects, the gross margin rate would have improved by 60 bps to 31.0% in the fourth quarter as compared to 30.4% for the same quarter last year.

Adjusted EBITDA was a loss of $51.2 million in the fourth quarter compared to a loss of $28.8 million for the same quarter last year.

Net Earnings for the fourth quarter this year were $30.9 million or 30 cents per share compared to a net loss of $123.6 million or $1.21 per share for the same quarter last year.

Sears Canada ended the fourth quarter with $313.9 million in cash. During Fiscal 2016, the company expects to receive proceeds from real estate transactions of approximately $221 million.

These proceeds would give the company a pro forma cash balance of approximately $535 million as of the end of the fourth quarter of Fiscal 2015.

Sears Canada had no cash borrowings on the company's $300 million credit facility as at the end of the fourth quarter of Fiscal 2015.


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