Toronto – Sears Canada more than doubled its net loss year-over-year to $75.2 million, from $31.2 million in a difficult first quarter of fiscal 2014. Expenses related to the closure of stores and severance of personnel played a major role in the growth of the retailer’s net loss.
In addition, revenues dropped 11% to $771.7 million from $867.1 million and same-store sales declined 7.6%. Sears cited poor weather as dampening sales performance, although it said it was able to clear fall and winter inventory as a result of unseasonably cold weather.
"The unseasonable weather had an adverse effect on our revenues," said Douglas C. Campbell, president and CEO, Sears Canada Inc. "Sales of spring merchandise were below last year, as winter-like weather was prevalent in most parts of the country well into the new season with cooler temperatures and significantly more snow in many areas. However, we took advantage of the extended winter and cleared a significant quantity of fall and winter carryover, virtually emptying our stockrooms and getting it in front of the customer.”