UPDATE 1-Sears Canada operating loss narrows on cost cuts

(Adds details from statement, background)
Sept 2 (Reuters) - Canadian department store chain Sears
Canada SCC.TO SRSC.O reported a smaller operating loss,
helped by the slowest decline in same-store sales in six
quarters and cost cuts.
Same-store sales, a key measure of retail performance, fell
3.9 percent in the second quarter ended Aug. 2. Comparable sales
fell 6.8 percent in the same period a year earlier.
The company said on Wednesday it is still searching for a
new CEO to replace Ronald Boire, who is stepping down by the end
of summer to take up the top job at struggling U.S. bookstore
chain Barnes & Noble (NYSE:BKS) Inc BKS.N .
Sears Canada, whose largest shareholders include Sears
Holdings Corp SHLD.O Chief Executive Eddie Lampert and his
hedge fund ESL Investments Inc, said total revenue fell 9
percent to C$768.8 million ($581.1 million).
The company, which traces its Canadian roots back to the
early 1950s, has stepped up spending on areas such as its
website and profitable merchandise categories, while looking to
exit unprofitable product lines.
Sears Canada has closed stores and cut jobs as it lost
market share to aggressive U.S. rivals such as Wal-Mart Stores (NYSE:WMT)
Inc WMT.N .
The Toronto-based company said on Wednesday it was looking
to cut costs by C$100 million to C$125 million on an annualized
basis from 2014 levels.
The new program will be implemented in the third quarter and
the company said it expects to take one-time charges of about
C$15 million to C$20 million.
The company has also launched a couple of programs,
including one that allows customers to exchange children's
clothing for the next size.
Sears Canada reported a profit of C$13.5 million ($10.20
million), or 13 Canadian cents per share, in the second quarter,
compared with a loss of C$21.3 million, or 21 Canadian cents per
share, a year earlier.
The net income included a pre-tax gain of C$67.2 million on
a sale and leaseback of three properties in British Columbia and
Alberta.
Operating loss narrowed to C$47.1 million from C$64.2
million.
The company's Toronto-listed shares had fallen more than 44
percent in the last 12 months through Tuesday's close.
($1 = 1.3230 Canadian dollars)