Sears reports bigger-than-expected loss

Retail Editor 4, May 24, 2013

Hoffman Estates, Ill. - Sears Holdings, parent company of Sears and Kmart as well as 51% stakeholder in Sears Canada, will chop inventory by $500 million this year, part of what has become a routine formula that also includes cutting costs and selling or spinning off assets to raise cash.

After spinning off its Hometown and Outlet stores last year, the company is now considering the sale of its protection agreement business, which sells customer service contracts on major appliances such as washing machines.

"A company of our size and with our assets should be generating a significant profit," said chairman and ceo Eddie Lampert during the company's quarterly conference call yesterday afternoon."

Sears Holdings' first quarter loss was bigger than expected. For the period ended May 4, the company reported a net loss of $279 million, or $2.63 per share, compared to net earnings in the year-ago quarter of $189 million, or $1.78 per share. Store closings, the Hometown/Outlet spinoff and severance costs were partly to blame, the company said.

Consolidated revenue fell 8.8% to $8.45 billion. Combined comp for U.S. Sears and Kmart stores declined 3.6%. Comp at Kmart dropped 4.6%. Comp at Sears U.S. slipped 2.4%.
Lampert acknowledged overarching economic and weather factors impacting the first quarter business, but added: "Having said that, I do not subscribe to the view that the macro factors are the sole reason for our poor performance. They have an impact, but even with that impact, we should be doing a lot better than we are."

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!