Sears Holdings Earnings: Here’s Why the Stock is Falling Now
Sears Holdings Corporation (NASDAQ:SHLD) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.33%.
Sears Holdings Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-1.46 in the quarter versus EPS of $-0.86 in the year-earlier quarter.
Revenue: Decreased 6.3% to $8.87 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sears Holdings Corporation reported adjusted EPS loss of $1.46 per share. By that measure, the company missed the mean analyst estimate of $-1.10. It missed the average revenue estimate of $9.01 billion.
Quoting Management: “We made meaningful progress this quarter in our transformation to a member-centric company. Shop Your Way members represented over 65% of our sales and they redeemed rewards points at a significantly higher rate than last year. While the increase in Shop Your Way promotional activity and member redemptions resulted in a meaningful increase in our costs, it demonstrates that our members are deepening their engagement with our program which will allow us to further accelerate our transformation,” commented Eddie Lampert, Sears Holdings’ Chairman and Chief Executive Officer. “At the same time, we recognize how important it is to improve the profitability of our company and I am disappointed that we did not deliver a better result.”
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