Losses Mount at Sears
December 08 2016 - 6:30AM
Dow Jones News
Sears Holdings Corp. on Thursday reported a $748 million
quarterly loss as revenue and gross margin fell, extending woes for
the struggling retailer as it continues to explore ways to monetize
its key brands.
Chief Executive Edward Lampert said the company is "fully
committed to restoring profitability," an uphill effort so far that
the company said could include additional expense reductions and
financing transactions.
Sears in May said was to exploring opportunities for its
Kenmore, Craftsman and DieHard brands, its Sears Home Services
business, and the company's real-estate portfolio. The company on
Thursday said those efforts are continuing, but it didn't provide
an update.
For its fiscal third latest quarter, Sears reported a loss of
$748 million, or $6.99 a share, compared with a loss of $454
million, or $4.26 a share, a year earlier. On an adjusted basis the
company posted a loss of $3.11 a share.
Revenue fell 13% $5.03 billion from $5.75 billion a year
earlier, dented by fewer Kmart and Sears stores in operation as
well as a 7.4% drop in same-store sales. Analysts polled by Thomson
Reuters anticipated a loss of $4.06 a share on $4.95 billion in
revenue.
The company's gross margin fell to 19.1% from 21.9% in the
year-ago period.
Sears, hurt as customers have continued to shift spending online
and away from brick-and-mortar stores, has been stumbling through
efforts to transform itself in a bid to return to profitability. It
has focused on assortment, sourcing, pricing and
inventory-management practices—sometimes at the expense of sales.
Sears has posted annual losses in each of its past six fiscal
years.
Write to Joshua Jamerson at joshua.jamerson@wsj.com and Imani
Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
December 08, 2016 07:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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