According to the Chicago Tribune, Sears – which also owns Kmart – has recently suffered multiple store closures and a shrinking bottom line, and stated in its earnings report that it was looking for options to expand not only its branded products but also is home services businesses.
Advertisement
Sears Holdings is looking to generate more cash from its trusty Kenmore, Craftsman and DieHard brands than the sale of washers and dryers, tools and vehicle batteries in its own stores. In a statement Thursday, the officials gave no specifics but said they believe the Kenmore, Craftsman and DieHard brands can grow significantly with an expanded presence outside of Sears and Kmart.
They’d better move quickly. But that lead has since fallen by more than half, to about 12.5 percent, placing it third behind Whirlpool, Samsung and GE.
In its first quarter earnings, the company reported that its net loss attributed to the shareholders extended to $471 million, or $4.41 loss per diluted share, in the first quarter ended on April 30 from $303 million, or $2.85 per share the company had during the same quarter a year ago.
For the quarter that ended April 30, sales at Kmart stores in the US that have been open for at least a year fell 5 percent. Last month, the company announced that 78 stores would close later this year, after already accelerating the closure of 50 stores at the start of the year.
The company reported the revenue of $5.4 billion, a decline of approximately $488 million from the same quarter past year.
Sears also said its chief financial officer, Robert Schriesheim, will be departing from his position with the company to focus on his other business interests and pursue other career opportunities.
Sears’ shares rose in early morning trading on the news. He had been the one behind the company’s cash-raising efforts.
Sales at Kmart stores in the US that have been open for at least a year fell 5 percent. In April, it said would close another 68 Kmarts and 10 Sears stores.
Sears CEO Eddie Lampert may have to sell the crown jewels.
He said Sears domestic and Kmart apparel businesses continue to be negatively impacted by a “heavily promotional competitive environment”.
Advertisement
Adjusted EBITDA of $(127) million, excluding Seritage Growth Properties and joint venture rent, in the first quarter of 2016 improved from $(141) million in the prior year first quarter. Cash balances were $286 million, while domestic comparable-store sales (comps) reduced 7.1% year-over-year (YoY). Schriesheim will remain until his replacement is found, the company said, and will be available as an adviser through January.
