Sears Canada reported higher operating earnings and a slight rise in same-store sales, although net profit was down to strong comparatives. For the quarter ending 1 November, net profit fell 33.8% to to C$68.9m (64 Canadian cents a share), from C$104m (97 cents) last year, when earnings were boosted by one-time gains from the sale of the company's corporate headquarters. Excluding unusual items, the company earned C$67.8m (63 cents), up from C$46m (44 cents) in 2007. Revenue rose 5.1% to C$1.44bn, while same-store sales were up 0.9%.

Canada's second-biggest department store chain vowed to remain competitive this Christmas season, and said it would continue to keep prices low. It noted, "We're certainly ready for an economy where Canadians are still not that confident about the economic outlook".

Earlier this week, the company lowered prices on a number of own-brand products in order to increase customer traffic.