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UPDATE 1-Sears Canada posts bigger loss, raises 2016 cost-cutting target

Published 2016-06-08, 08:45 a/m
© Reuters. UPDATE 1-Sears Canada posts bigger loss, raises 2016 cost-cutting target
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June 8 (Reuters) - Canadian department store operator Sears
Canada Inc SCC.TO reported a bigger quarterly loss, and said
it would cut more costs this year, as the company struggles with
declining sales.
Hit by increasing competition from U.S. retail giants such
as Wal-Mart Stores Inc (NYSE:WMT) WMT.N , Sears Canada has been shutting
stores and cutting jobs.
The company, whose largest shareholder is Sears Holdings
Corp SHLD.O CEO Edward Lampert and his hedge fund, raised its
2016 cost reduction target to C$127-C$155 million ($100
million-$122 million) from the C$100 million-C$127 million it
forecast in March.
Sears Canada said it cut about C$80 million in costs in the
first quarter and said savings would be reinvested in growth
initiatives.
Sears Canada said it would offer "a more logically designed
merchandise assortment," to drive faster inventory turns, and
higher sales per square foot.
The company, which agreed sell and lease back a distribution
outlet in Calgary in March, said on Wednesday it has entered a
similar agreement for another outlet in British Columbia.
The company's same-store sales declined 7.4 percent in the
first quarter ended April 30.
The net loss in the quarter increased to C$63.6 million
($50.2 million), or 62 Canadian cents per share, from C$59.1
million, or 58 Canadian cents, a year earlier.
Revenue fell 14.5 percent to C$595.9 million.
($1 = 1.2681 Canadian dollars)

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