By The Canadian Press
Sears Holdings Corp. says its Canadian subsidiary had reduced sales of electronics, home decor, hardware and clothing in the first quarter.
[HOFFMAN ESTATES, Ill.] — Sears Holdings Corp. says its Canadian subsidiary had reduced sales of electronics, home decor, hardware and clothing in the first quarter and could see a loss when its full financial report is released.
The Chicago-area retail company released the preliminary report Tuesday, along with figures from its U.S. operations, ahead of the Sears Holdings annual shareholders meeting.
It said that Sears Canada (TSX:SCC) had a 6.2 per cent decline in comparable-store sales during the first quarter. The declines in certain types of merchandise were partially offset by increases in major appliances and mattresses.
Sears Holdings also said the Canadian operations will drag down its overall profit.
Total adjusted earnings for Sears Holdings for the quarter are estimated to be between US$135 million and US$195 million, with U.S. domestic operations contributing between US$165 million and US$195 million.
At the worst end of the estimate, the Canadian operation will have and adjusted loss of US$30 million and at the best Sears Canada will break even on an adjusted basis.
Sears Canada issued a statement from Toronto acknowledging the preliminary report by its parent but noted the two companies use different accounting standards. The Canadian financial report is to be released on May 16.