Sears Canada Inc. announced its unaudited fourth quarter and full-year results. Total revenues for the 13-week period ended Dec. 31, 2005 were CAD $1.908 billion (approx. U.S. $1.667 billion) compared to $1.915 billion (approx. $1.673 billion) for the 13 weeks ended Jan. 1, 2005, a decrease of 0.4 percent. Same store sales increased by 1.1 percent during the same period.
Sears Canada reports that net earnings for the quarter, excluding non-comparable items, were $102.0 million (approx. $89.1 million) or $0.95 (approx. $0.83) per share, an increase of 16.7 percent compared to $87.3 million (approx. $76.3 million) or $0.82 (approx. $0.72) per share in the quarter last year. Net earnings for the quarter including non-comparable items totaled $783.4 million (approx. $684.5 million) or $7.30 (approx. $6.38) per share compared to $94.8 million (approx. $82.8 million) or $0.89 (approx. $0.77) per share in same the quarter last year.
In the fourth quarter of 2005, merchandise net sales increased 2.0 percent over the prior year's fourth quarter, with the largest improvement being in major appliances, due in part to the recharge program announced at the annual Shareholders' meeting last April. Designed to strengthen Kenmore's number one market share position, the recharge focused significant resources and new, innovative product into this business. Plans to initiate recharges in other destination businesses throughout 2006 are already underway.
Full-line, Sears Home, and Dealer stores all showed sales increases in the fourth quarter compared to the same period last year. Expenses were down 3.5 percent for the same period, gross margin was up 89 basis points and inventory levels were slightly lower. By region, sales were strongest in Western Canada and weakest in the Atlantic provinces.
Revenues for the full year were $6.238 billion (approx. $5.449 billion) for the year ended Dec. 31, 2005 compared to $6.230 billion (approx. $5.442 billion) for the year ended Jan. 1, 2005, an increase of 0.1 percent. Comparable store sales were down approximately 2.9 percent. Net earnings for the full year excluding non-comparable items were $129.9 million (approx. $113.5 million) or $1.22 (approx. $1.07) per share, an increase of 5.8 percent compared to $122.8 million (approx. $107.3 million) or $1.15 (approx. $1.00) per share last year. Net earnings for the full year including non-comparable items were $770.8 million (approx. $673.2 million) or $7.22 (approx. $6.31) per share compared to $128.7 million (approx. $112.4 million) or $1.21 (approx. $1.06) per share last year. Capital expenditures were $86 million (approx. $75.1 million) for the full year, compared to $156 million (approx. 136.2 million) in 2004.
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