Sears Delivers 2Q Loss
September 7, 2009,
Sears Holdings cut costs during the second quarter, but not fast enough to stay ahead of falling revenue, and wound up with a $94 million loss. Wall Street had been expecting a profit of 35 cents per share. The loss was 79 cents per share compared to a year-ago profit of 50 cents per share, or $65 million.
The company closed 28 stores during the quarter, taking a charge of $61 million, or 32 cents per share after taxes. It also reduced selling and administrative expenses by $212 million during the quarter for a total SG&A reduction of $1 billion over the past four quarters.
Revenue fell 89.8% to $1.2 billion from $11.8 billion a year ago. Sears attributed the decline to lower comps and a $126 million impact from unfavorable currency exchange rates. Total U.S. comps fell 8.6%, with Sears' comps off 12.5% and Kmart's down 3.9%.