Sears Q3 Loss Wider than Expected
December 8, 2008-- Home Textiles Today,
Sears Holdings posted a net loss of $146 million, or 16 cents per share, for the third quarter ended Nov. 1. In last year's third quarter, the company reported net income of $4 million, or 3 cents per share.
Earnings were impacted by 49 cents a share from a charge related to closing 14 stores, as well as a gain of 23 cents a share on Sears Canada hedge transactions.
Sales dropped 8% to $10.7 billion. Comps fell 10.6% at U.S. Sears stores and 7% at Kmart, for a corporate comp decline of 9%.
Comps fell across most major categories at Kmart and U.S. Sears stores — and were especially hard hit in home-related goods, the company said.
Sears Holdings also announced that it will buy back up to $500 million in shares. There is already an authorization in place to buy up to $72 million worth of shares. Year to date as of Nov. 1, Sears Holdings had repurchased $558 million in shares. From Nov. 2 to Nov. 29, the company repurchased $53 million in shares.