That boosted net profit attributable to Sears shareholders to $208 million, or $1.84 per share, in the quarter ended August. 1, compared with a loss of $573 million, or $5.39 per share, a year earlier.
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Sears shares have declined 29 % because the starting of the yr. The inventory has fallen 34 % within the final 12 months. These accounted for $584 million of the revenue decline. The stock’s market capitalization is $2.57 billion.
As a quick reminder, SHLD reported 1Q/15 EPS loss of ($2.85), $0.26 worse than the Street’s consensus estimate of ($2.59). During the same period in the prior year, the company posted ($2.82) EPS. The company had previously guided for comps to fall by 10.6% overall and from Kmart and Sears division to fall 6.9% and 13.9%, respectively.
As outlined in the Registration Statement of Form S-4 filed by SHLD and Kmart in connection with their merger, “as a result of Vornado’s announcement and other concerns including maintaining confidentiality of the discussions, Sears and Kmart decided to accelerate the timeframe for implementing the proposed business combination to minimize the period during which speculation or additional price volatility could impair the parties’ ability to reach an agreement on financial terms”. This only indicates that its sales continue to topple as it fails to revive traction and shoppers’ traffic.
The company had already cautioned of its sales decline earlier in August. The plaintiff says the company’s attempt to sell off its prime real estate holdings to a trust would strip Sears Holdings Corp of one of its last remaining valuable assets, leaving it as a debt-laden, money-losing renter in its own stores with a $150 million per year rental load for the 254 stores that would have to be paid to Seritage Growth Properties, another company Lampert controls. The proceeds have helped drive its profitability for the quarter, pushing it to report its first profit in three years.
Sears has been struggling to transform itself fast enough to counter the steep declines in sales.
Sears Chief Executive Edward Lampert has been trying to turn around the ailing business by investing in new technologies and services, but results have continued to wither. They have also not been able to counter the string of losses the company has been facing for the past three years.
Department store chain Sears Holdings Corp. In July, the retailer completed this exercise for 235 of its best properties and locations into the REIT, for which the company has booked $1.4 billion in total gains from asset sale and leaseback transaction.
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Sears attributed a $780 million drop in revenue to the deconsolidation of Sears Canada and $386 million to store closures. The stock was acquired at an average cost of $22.89 per share, with a total value of $6,346,298.28.
