Sears reported a loss of $454 million, or $4.26 a share, compared with a loss of $548 million, or $5.15, a year earlier.
Advertisement
The restructuring retailer posted a net loss in the period ended October 31 of $53.2 million, or 52 cents per share, compared with a net loss of $118.7 million ($1.16) in the same period a year ago. As expected, the results of these actions have led to comparable store sales declines despite an increase in profitability. Excluding items such as store closures and amortization, the adjusted loss widened to $2.86 a share from $2.71.
Revenues fell 20 percent to $5.8 billion, reflecting a $611 million hit from the uncoupling of Sears Canada and declining comps at Kmart and Sears. In Kmart stores, home appliances and mattresses both recorded sales gains, but these were offset by poor performances by apparel, consumer electronics, grocery and household, and drugstore.
Revenue at stores open more than a year fell 9.6 percent at Sears and 7.5 percent at Kmart. To reduce expenses and conserve cash, Sears has been aggressively closing under-performing stores across the country in recent years.
Quote you on that: Sears CEO Edward Lampert, a hedge fund billionaire who owns the bulk of the retailer’s shares, said in a statement that he recognizes that “a lot of work remains”, noting that he brought in new leaders such as former Gymboree executive Joelle Maher, named Sears president in July, to drive the business forward. Its membership loyalty program, Shop Your Way, accounts for roughly 75 percent of sales, the company said.
Advertisement
Rob Schriesheim, Holdings’ Chief Financial Officer, said, “During 2015, we have enhanced Sears Holdings’ financial flexibility and achieved our objective of reducing our reliance on inventory as a source of financing with the completion of the rights offering and sale-leaseback transaction with Seritage Growth Properties which generated $2.7 billion in cash and the amendment and extension of the Company’s $3.275 billion asset-based credit facility”.
