Sears Holdings Corp. (SHLD) reported a wider loss in its fiscal
third quarter as revenue slumped due to weaker same-store sales and
store closures.
Sears, controlled by billionaire hedge-fund investor Edward
Lampert, has been working to shed assets and spin off businesses as
it tries to turn around its mass-market retail stores. The company
already closed more than 300 stores since 2010; last month it said
it may spin off its Lands' End brand, would consider strategic
alternatives for its line of auto centers and is selling some store
leases in Canada.
At the same time, Sears last month said that the third-quarter's
sales would again be lower than a year ago.
The retailer already used the spin-off tactic twice since the
beginning of 2012. Sears handed its own shareholders the stock of
California hardware-store chain Orchard Supply Hardware. Then later
last year, Sears moved to spin off another hardware business, the
Sears Hometown & Outlet Stores Inc.
Mr. Lampert said Thursday the company is pushing to transform
its business into a member-centric one, using its Shop Your Way
program. In the latest quarter, Shop Your Way members accounted for
70% of sales, up from 65% in the prior quarter.
Domestic same-store sales dropped 3.1%, with a 2.1% declined at
Kmart and a 4% drop at Sears domestic stores. Kmart's decline
reflected weakness in grocery, household and drugstore sales, as
well as consumer electronics and toys. Sears lower sales stemmed
from decreases in most categories, the company said. Online and
multi-channel sales were up 17% from a year ago.
For the quarter ended Nov. 2, Sears posted a loss of $534
million, or $5.03 a share, compared with a year-earlier loss of
$498 million, or $4.70 a share. Adjusting for certain tax impacts
and other items, the loss was $2.88 a share compared with a
year-earlier loss of $2.07.
Revenue fell 6.6% to $8.27 billion due to fewer stores and lower
domestic same-store sales.
Shares closed Wednesday at $61.70 and were inactive premarket.
The stock is up 49% so far this year.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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