Sears Canada Inc., one of the most notable Canadian department store chains, has already posted their quarterly profit. According to the data, the profit has improved a bit by lowering its cost and at the same time, a one-time gain on sale of properties.
BNN says that Sears Canada reported $13.5-million profit in their Q2. This means that the company has earned 13 cents per share. The report also shows the comparative data of the company's loss. The figures indicate that there's $21.3-million company loss, which further means that 21 cents per share has been lost as it operated in the red last year.
Other data included are its net income, which includes a pre-tax gain "of $67.2-million on a sale and leaseback of three properties in British Columbia and Alberta." It has also been reflected in the 2015 Q2 that "same-store sales, a key measure of retail performance, fell 3.9 per cent."
In a different article reported by Wall Street Journal, it states that Sear Canada has announced its cost-cutting plan. "Over many years, the company has accumulated an expense structure that is unsustainable. Although we have had significant cost reductions in the past two years, we still have an inefficient cost structure," the company revealed in its release earnings statement.
Sear Canada further says that its cost-cutting plan for its opex would be "100 million Canadian dollars ($75.6 million) and C$125 million from 2014 levels." However, the details of how to achieve that cost-cutting plans have not been disclosed in the public. What has been revealed in the statement is that the company's plan "would result in one-time costs of between C$15 million and C$20 million."
In addition to the above information, the Canadian department store chain has also planned to put "another C$28 million of noncore, non-mall real-estate properties" in the real estate market at the same time "would continue to look at other potential real-estate sales. It noted it doesn't plan to sell or exit any of its full-line stores."
