Shoppers at Toronto's Eaton Centre.Deborah Baic/The Globe and Mail
Sears Canada Inc. has reported that its second-quarter profit dropped to $31.9-million, pulled down by low consumer confidence.
The Toronto-based retailer said earnings per share for the quarter was 29 cents versus a stronger profit of $49.1-million or 45 cents for the same quarter in 2009.
Revenues were $1.21-billion compared to $1.25-billion, while same-store sales slipped 2.4 per cent.
"Our results reflect a continuing downward trend in consumer confidence caused by high unemployment and other factors," Dene Rogers, president and CEO, said in a statement.
The retailer said in response to economic conditions and a competitive marketplace, it's offering financing terms for "cost-conscious" consumers including zero interest, payment deferrals for up to 36 months and loyalty points.
Sears also said it's offering custom furniture with thousands of options for customers to design sofas, tables and other home furnishings according to their tastes at no additional cost versus stocked models at other retailers.
Total revenue for the 26-week period ended July 31 was $2.28-billion compared to $2.36-billion for the 26-week period last year, which ended August 1, 2009, a decrease of 3.6 per cent, Sears said. Same-store sales decreased 2.2 per cent.
Sears Canada is a multichannel retailer with a network of 197 corporate stores, 241 dealer stores, 31 home improvement showrooms, more than 1,800 catalogue merchandise pick-up locations, 108 Sears Travel offices and a nationwide home maintenance, repair, and installation network.
Sears also publishes a general merchandise catalogue and offers shopping online.