Sears Canada Posts First-Quarter Loss

TORONTO—Sears Canada Inc. posted another quarterly loss, but the struggling retailer also said it saw signs of improvement in its business.

The Toronto-based company reported a net loss of 59.1 million Canadian dollars ($48.3 million), or 58 Canadian cents a share, in the fiscal first quarter ended May 2. That was an improvement over the loss of C$75.2 million, or 74 Canadian cents, a year earlier, and a smaller loss than it had posted in recent quarters.

"We began to see signs that our business was performing better this quarter," Chief Executive Ron Boire said in a statement, noting that the company's Ebitda loss had also narrowed. Same-store sales fell by 4.3%, which was less of a decline than in any quarter last year, Mr. Boire added.

Revenue fell to C$697.2 million from C$771.7 million, partly reflecting store closures.

Mr. Boire officially took the helm of Sears Canada in January after having served as interim CEO for about three months. He formerly was a senior executive at Sears Holdings Corp., which sold down much of its 51% stake in Sears Canada last fall to raise cash amid its own performance struggles.

Sears Canada has struggled to stay relevant in a competitive Canadian retail landscape, buffeted in recent years by the arrival and exit of major U.S. retailers, including Target Corp., whose Canadian foray proved short-lived.

Sears Canada said it is working to improve its product offerings and to become what it termed "an effective omnichannel retailer," but added, "we know much work lies ahead of us."

Sears Holdings now owns about 12% of Sears Canada, according to FactSet. The U.S. company's CEO, Edward Lampert, holds about 48% of Sears Canada.

Write to Carolyn King at [e-mail]

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