27 February 2013/16 Raby’ ath-Thani 1434/09 Esfand 1391

More proof the main streamers were lying about the “increased” holiday sales. Today, Sears CAnada reported that their 2012 4th Quarter (which ended for Sears CA on 02 February 2013) holiday profits were down 5% from 4th Q 2011 (which ended on 28 January 2012).  Notice that 4th Q 2012 had 14 weeks compared to 4th Q 2011 which had 13 weeks.  Same store sales were down 3.8%.

Despite the fact that 4th Q 2012 had one more week in it Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $62.4 million CAD (CAnadian Dollar). Now realize that the EBITDA for the 13 week 4th Q 2011 was $101.8 million.  That a $39.4 million drop in 2012!

It turns out that Sears CA claimed profits mainly because of voluntary buyouts of “post-retirement benefits” and the sale of a joint venture, it had nothing to do with selling products on their store shelves.

For the whole year Sears CA had a 6.9% drop in revenue, most of that because of same store sales declinations. Calvin McDonald, President and Chief Executive Officer, said most of the lack of sales were in their premiere brands like Crafstman, and other hardware, electronics and even appliances. Amazingly Sears CA had increased sales in clothing!

In the United States, Sears Holdings is expected to make public their 2012 results on 28 February 2013.