Sears Holdings Earnings: Loss Widens on Falling Revenue
S&P 500 (NYSE:SPY) component Sears Holdings Corporation (NASDAQ:SHLD) reported its results for the third quarter. Sears Holdings is a retail conglomerate with full-line and specialty retail stores in the United States and Canada. It is the holding company of Kmart Holding Corporation and Sears, Roebuck and Co. Its three reportable segments are Kmart, Sears Domestic and Sears Canada.
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Sears Holdings Corporation Earnings Cheat Sheet
Results: Loss widened to $498 million ($4.70 per diluted share) from $421 million (loss of $3.95 per share) in the same quarter a year earlier.
Revenue: Fell 5.8% to $8.86 billion from the year-earlier quarter.
Quoting Management: Lou D’Ambrosio, Sears Holdings’ Chief Executive Officer and President, said, “For the 3rd quarter and year-to-date, we improved EBITDA, accelerated our strategic actions and generated significant cash by delivering on the actions we outlined at our Annual meeting. Our EBITDA improvement in the quarter came from some of our most important categories like Appliances, Apparel, and Home Services as we introduced new offers, honed pricing, effectively managed costs and implemented better inventory management. We did experience shortfalls, however, in categories like Grocery and Household and Consumer Electronics, and are taking actions to improve that performance. We will continue to take the actions necessary to create value and retain the flexibility to invest in the strategic priorities of our company. We are rapidly moving to a member based business model. Our investments are focused on our members and their experience — at the store, online, and mobile — which is why we are investing in Integrated Retail and our SHOP YOUR WAY membership program. Over half of our revenues at Sears Domestic and Kmart now come from SHOP YOUR WAY membership. As we commence the holidays, I also want to thank our associates for their hard work and commitment and for most recently their incredible support to help the victims of Hurricane Sandy. Associates across Sears Holdings worked tirelessly to bring essential goods — from water to blankets to generators – to the people hit hardest by the storm.”
The average estimate for the fiscal year is now 94 cents per share, a rise from the $1.94 predicted ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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