Retailer Sears Canada posted a 28 percent drop in its quarterly profit, hurt in part by lower demand for appliances.
“The 2010 results were disappointing due to several external factors including increasing household debt, at an all time high, which affects sales in major expense items such as appliances,” Chief Executive Dene Rogers said in a statement.
Sears Canada, which is 90.4 percent owned by Sears Holdings Corp , said net income for the quarter ended Jan 29, fell to C$92.2 million, or 87 Canadian cents a share, from C$128.2 million, or C$1.19 a share, a year ago.
The Toronto-based company said revenue was down 3 percent to C$1.48 billion.
In January, parent company Sears Holding forecast a quarterly profit above Wall Street expectations, helped by strong sales of toys, home and sporting goods at Kmart.
Shares of Sears Canada closed at C$20.20 on Tuesday on the Toronto Stock Exchange.
