21:09:48 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Sears Canada Inc
Symbol SCC
Shares Issued 101,877,662
Close 2015-02-26 C$ 12.39
Market Cap C$ 1,262,264,232
Recent Sedar Documents

Post says Sears downgraded on another losing quarter

2015-02-27 09:47 ET - In the News

The Financial Post reports in its Friday edition another disappointing quarter for Sears Canada prompted a downgrade from Desjardins Securities analyst Keith Howlett on Thursday. The Post's Jonathan Ratner, writing in Trading Desk, says the retailer posted negative operating EBITDA (earnings before interest, taxes, depreciation and amortization) in all four quarters of fiscal 2014. Sales and gross margins were also below forecast in Q4, while same-store sales declined by 9.1 per cent. As a result of Sears's operating needs, the analyst does not expect it to declare a special dividend. However, he does not think liquidity will be a concern in fiscal 2015, as the company ended Q4 with $259-million in cash and no debt. "It is urgent, in our view, that the board of directors assess immediate, and potentially radical, alternatives for the company," Mr. Howlett told clients, cutting his rating to sell from hold and reducing his price target to $8.50 from $12. The company consumed $255-million of cash in fiscal 2014, he noted. Mr. Howlett expects Sears will sharply reduce its capital budget for fiscal 2015. Also, with 140 Target sites on the market in Canada, the timing for selling undermarket leases is not ideal.

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