Proactiveinvestors USA & Canada Sears Holdings Corp https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Sears Holdings Corp RSS feed en Mon, 18 Feb 2019 20:47:21 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Sears purchased by hedge funder Eddie Lampert, staves off bankruptcy ]]> https://www.proactiveinvestors.com/companies/news/214283/sears-purchased-by-hedge-funder-eddie-lampert-staves-off-bankruptcy-214283.html Sears Holdings Corp (OTCMKTS:SHLDQ) has staved off liquidation once more after a bankruptcy court approved the iconic retail's acquisition by billionaire Eddie Lampert's hedge fund, ESL Investments.

CNBC reports that the $5.2 billion purchase of the once-mighty retail chain will save an estimated 45,000 jobs in more than 424 stores.

The deal includes an $885 million cash payment, the assumption of $1.3 billion in liabilities, and an agreement to pay off $621 million in senior debt, according to the report.

READ: Beleaguered Sears nears financing deal to stay open until Christmas to stave off bankruptcy, says CNBC

Sears announced in October that it would file for Chapter 11 protection. In a statement, the company said that the decision to file for bankruptcy was an effort to “establish a sustainable capital structure” and “grow profitably for the long term.”

Creditors had voiced concerns over the acquisition by ESL Investments, which is run by Lampert, as having failed to successfully run the company and was part of a “long-running scheme” by Lambert -- it's largest shareholder -- to drain the company, according to a story in USA Today.

A stalwart of the American retail boom in the late 19th century, Sears grew into a household name through its ubiquitous catalog, selling practically everything that American consumers could want.

The road to bankruptcy has been in the workings for years as Sears has seen diminishing returns due to online shopping and an incompatibility problem with younger generations. No longer a driving force in the retail market, Sears reported only about 17% of monthly revenues in 2018 of peers such as Kohl’s Corp (NYSE:KSS) and Macy’s Inc (NYSE:M).

--By Tyler Dikun

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Fri, 08 Feb 2019 09:53:00 -0500 https://www.proactiveinvestors.com/companies/news/214283/sears-purchased-by-hedge-funder-eddie-lampert-staves-off-bankruptcy-214283.html
<![CDATA[News - Beleaguered Sears nears financing deal to stay open until Christmas to stave off bankruptcy, says CNBC ]]> https://www.proactiveinvestors.com/companies/news/207010/beleaguered-sears-nears-financing-deal-to-stay-open-until-christmas-to-stave-off-bankruptcy-says-cnbc-207010.html Troubled retailer Sears Holdings Corp (NASDAQ:SHLD) is close to a deal with lenders that should keep it alive through the Christmas holiday season, a report by CNBC said.

The goal for the once iconic retailer of appliances for American homes is to stay open until Christmas in the hope of finding a 'White Knight' buyer who can save Sears, which is teetering on the brink of a bankruptcy filing.

As part of the deal, Sears would close some of its stores immediately with the exact number being negotiated and the impact on its 90,000 workers uncertain, the report said.

The retailer is trying to initially raise $300 million to $500 million to support holiday operations and that amount could well increase over time, it added.

READ: Sears names new independent director amid report it is skipping paying vendors

Sears has not finalized a buyer for the business and will likely seek one after it files for bankruptcy.

Brick-and-mortar retailers such as Sears have fallen on hard times. The company's dominance a few decades ago mirrors that of Amazon.com Inc (NASDAQ:AMZN), which now sits astride as the behemoth of the US retail industry.

Shares of Sears were trading 25.31% higher at US$0.4287 by midday on Friday. On May 1, 2015, the shares traded at $42.95.

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

 

 

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Fri, 12 Oct 2018 12:06:00 -0400 https://www.proactiveinvestors.com/companies/news/207010/beleaguered-sears-nears-financing-deal-to-stay-open-until-christmas-to-stave-off-bankruptcy-says-cnbc-207010.html
<![CDATA[News - Sears names new independent director amid report it is skipping paying vendors ]]> https://www.proactiveinvestors.com/companies/news/206926/sears-names-new-independent-director-amid-report-it-is-skipping-paying-vendors-206926.html Sears Holdings Corp (NASDAQ:SHLD) said on Thursday that Alan J. Carr, the managing member and CEO of Drivetrain LLC has joined the board of directors of the company amid a report the iconic retailer is skipping payments to vendors amid talks it will soon file for bankruptcy protection.

Reuters reports that three vendors said Sears had missed scheduled payments in the last couple of weeks, although it was not clear how widespread the vendor problems are and how they affect the company's supply chain ahead of the holiday shopping season.

Carr has significant experience as a principal, investor and advisor leading complex financial restructurings, as well as serving as a director of reorganized businesses in the US and Europe, Sears said in a statement.

Shares of the company were down 16.7% to $0.405 by midsession on Thursday.

READ: Sears to close 72 unprofitable stores after missing market's fiscal 1Q profit estimate

Vendors could halt shipments to the company if they are worried Sears can no longer pay and this could be potentially devastating for the retailer. 

"Alan brings deep experience as a director for companies that went through complex organizational change. We are pleased to welcome him to the board and look forward to the benefit of his expertise as we work to maximize value for the company and its stakeholders," said Sears chairman and CEO Edward Lampert.

Sears Holdings is a leading retailer focused on connecting the digital and physical shopping experiences of customers.

The company is based in Hoffman Estates, Illinois. 

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Thu, 11 Oct 2018 12:35:00 -0400 https://www.proactiveinvestors.com/companies/news/206926/sears-names-new-independent-director-amid-report-it-is-skipping-paying-vendors-206926.html
<![CDATA[Media files - Small-Cap Snapshot: Esterline Technologies climbs after agreeing to $3.6B acquisition; Sears plunges in face of possible bankruptcy ]]> https://www.proactiveinvestors.com/companies/stocktube/10807/small-cap-snapshot-esterline-technologies-climbs-after-agreeing-to-36b-acquisition-sears-plunges-in-face-of-possible-bankruptcy-10807.html Wed, 10 Oct 2018 15:26:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10807/small-cap-snapshot-esterline-technologies-climbs-after-agreeing-to-36b-acquisition-sears-plunges-in-face-of-possible-bankruptcy-10807.html <![CDATA[News - Sears reports 2Q beat on revenue, mostly coming off store closures ]]> https://www.proactiveinvestors.com/companies/news/204878/sears-reports-2q-beat-on-revenue-mostly-coming-off-store-closures-204878.html Sears Holding Corp (NASDAQ:SHLD) reported on Thursday a beat in second quarter total revenues although the gains came mainly from store closures as shares of the troubled retailer rose in after-hours trade.

The company said total revenues reached approximately US$3.2bn during the second quarter of 2018, compared with expectations it would reached US$2.91bn and revenue of US$4.3bn in the prior year quarter.

Store closures again significantly contributed to the year over year decline, the company said.

"We have yet to achieve our goal of returning the company to profitability," said company chairman and chief executive Edward Lampert. "We continue to close unprofitable stores, and we are hopeful that we can stabilize our store base at a meaningful level in the near future."

READ: Sears CEO says the fight to restore the struggling retailer will continue

Sears stock climbed 5.45% to trade at US$1.28 on Friday, having jumped at the start to its session peak at US$1.37.

Shares of the company were up 9.09% in after-hours trade to US$1.32, having closed on Thursday 9.02% down at US$1.21.

Sears said total comparable store sales declined 3.9% during the quarter, which also reflected Kmart comparable store sales declining 3.7%.

The company was supposed to release its results early on Thursday, but delayed their release until after the market closed.

Sears is a retailer that is focused on both the digital and physical shopping experience. The company is based in Hoffman Estates, Illinois.

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Thu, 13 Sep 2018 17:00:00 -0400 https://www.proactiveinvestors.com/companies/news/204878/sears-reports-2q-beat-on-revenue-mostly-coming-off-store-closures-204878.html
<![CDATA[News - Sears CEO’s hedge fund throws ‘critical’ lifeline to buy Kenmore brand for US$400mln ]]> https://www.proactiveinvestors.com/companies/news/202964/sears-ceos-hedge-fund-throws-critical-lifeline-to-buy-kenmore-brand-for-us400mln-202964.html Sears Holdings Corp (NASDAQ:SHLD) CEO Eddie Lampert Tuesday offered to buy one of the financially strapped department chain's last remaining valuable product brands, describing a speedy deal as "critical."

Through his hedge fund ESL Investments, billionaire Lampert delivered an offer worth US$400mln for the Kenmore house appliances brand.

According to a letter Lampert sent to Sears’s board, as reported by MarketWatch, the offer by ESL is contingent on obtaining equity financing from an unnamed potential partner. ESL also proposed buying the company’s home-services division for US$70mln.

Lampert proposed signing the tentative deal and then allowing Sears to shop for a competing offer before closing the deal within 60 to 90 days.

READ: Sears to close 72 unprofitable stores after missing market's fiscal 1Q profit estimate

"Speed and certainty here are critical. We believe, therefore, that an expedited process is in the best interest of all parties involved," Lampert wrote.

The offers came after Lampert expressed interest in the possibility of acquiring Kenmore and certain other Sears assets in April. 

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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Wed, 15 Aug 2018 08:44:00 -0400 https://www.proactiveinvestors.com/companies/news/202964/sears-ceos-hedge-fund-throws-critical-lifeline-to-buy-kenmore-brand-for-us400mln-202964.html
<![CDATA[News - Sears expands its tire partnership with Amazon.com ]]> https://www.proactiveinvestors.com/companies/news/198817/sears-expands-its-tire-partnership-with-amazoncom-198817.html Sears Auto Centers is broadening its partnership with the ecommerce giant Amazon.com Inc (NASDAQ:AMZN) to provide full-service tire installation for customers who purchase tires on Amazon across the US.

Just last month, the struggling department store chain, owned by Sears Holding Corp (NASDAQ:SHLD), revealed that it had reached a deal, which allows for Amazon customers to select their tires online and choose to ship them to one of 47 Sears Auto Centers for installation.

Read: Sears Auto Centers teams up with Amazon to provide full-service tire installation

Sears now says that 71 more of its auto centers will take part in the promotion, bringing the total number involved to 118.

“Amazon customer reviews have been very positive and we are two months ahead of schedule,” said Mike McCarthy, a Sears vice-president, in a statement.

While getting tires installed, Amazon customers have also been taking advantage of additional services such as oil changes and alignments. 

Read: Sears gathers special committee to review asset sales, including its Kenmore brand

Sears has been struggling to claw its way back to profitability as sales at its Sears and Kmart stores have been dreadful in recent years. Just this month, Sears said it would shut 72 of its 100 unprofitable stores this year. It has also formed a special committee to explore asset sales like its Kenmore brand to the hedge fund run by chief executive officer Eddie Lampert.

Sears shares jumped 7.6% to US$2.64 in afternoon trade on the new tire partnership with Amazon.

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Wed, 13 Jun 2018 15:03:00 -0400 https://www.proactiveinvestors.com/companies/news/198817/sears-expands-its-tire-partnership-with-amazoncom-198817.html
<![CDATA[News - Sears to close 72 unprofitable stores after missing market's fiscal 1Q profit estimate ]]> https://www.proactiveinvestors.com/companies/news/198020/sears-to-close-72-unprofitable-stores-after-missing-market-s-fiscal-1q-profit-estimate-198020.html Investors sent shares of the beleaguered Sears Holding Corporation (NASDAQ:SHLD) plunging in pre-market trade after the home retailer missed the market’s fiscal first-quarter profit estimate by a mile and said it would be closing 72 unprofitable Sears and Kmart stores this year.

For its first quarter ended May 5, Sears posted a net loss of US$424mln or US$3.93 per share, which fell far short of the consensus estimate of a loss of US$1.51 per share.

The company’s revenue came to US$2.9bln in the first quarter, which also missed the consensus estimate of US$2.86bn.

The retailer is targeting 100 of its loss-making stores, which also include Kmart outlets, and will start the process of closing 72 of them in the "near future."

“We continue to evaluate our network of stores, which are a critical component in our transformation, and will make further adjustments as needed and as warranted,” the company said.

Sales at Kmart and Sears were dismal in the quarter. Total comparable store sales dropped by 9.5% at Kmart while Sears saw a 13.4% decline.

Sears shares dropped 7.5% to US$2.97 in pre-market trade and are off by 15% since mid-May.

READ: Sears gathers special committee to review asset sales, including its Kenmore brand

Earlier this month, the company formed a special committee to explore asset sales in its latest move to claw back to profitability.

The committee will review a proposal from ESL Investments, the hedge fund run by its CEO Eddie Lampert, to buy some of the iconic retailer’s assets.

The segments possible up for sale include the Kenmore appliance brand, the Sears home improvement products division and the parts direct division.

“We remain committed to restoring positive adjusted EBITDA and will continue to explore opportunities to unlock the full potential of our assets for our shareholders,” said Lampert in a statement. “This includes exploring third-party partnerships involving several of our businesses- such as Sears Home Services, Innovel, Kenmore and DieHard.”

To salvage its business and stave off bankruptcy, Lampert said that Sears is also considering smaller stores that blend traditional retailing with a bigger online presence.

As of the close of May, Sears had US$360mln under its revolving credit facility and US$281mln under its general debt basket.

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Thu, 31 May 2018 08:23:00 -0400 https://www.proactiveinvestors.com/companies/news/198020/sears-to-close-72-unprofitable-stores-after-missing-market-s-fiscal-1q-profit-estimate-198020.html
<![CDATA[News - Sears gathers special committee to review asset sales, including its Kenmore brand ]]> https://www.proactiveinvestors.com/companies/news/196941/sears-gathers-special-committee-to-review-asset-sales-including-its-kenmore-brand-196941.html Sears Holding Corp (NASDAQ:SHLD) has formed a special committee to explore asset sales in its latest move to claw back to profitability.

The committee will review a proposal from ESL Investments, the hedge fund run by its CEO Eddie Lampert, to buy some of the iconic retailer’s assets.

Shares of the beleaguered retail chain were up more than 7% to US$3.68.

READ: Sears CEO says the fight to restore the struggling retailer will continue

The segments possible up for sale include the Kenmore appliance brand, the Sears home improvement products division and the parts direct division.

In a statement, Sears said that it will not comment on the asset sale at this time and will continue “exploring ways to unlock value across a range of assets, including the sale assets.”

At the annual shareholders meeting last week, Lampert told investors that he will continue fighting to restore the struggling retailer. Despite the challenges of a tough retail environment, he maintained his confidence in the company’s ability to transform itself.

The retailer has been partnering with other well-known companies, adding Uber and GasBuddy to its Shop Your Way membership platform.

READ: Sears Auto Centers teams up with Amazon to provide full-service tire installation

Sears Auto Centers recently teamed up with Amazon.com (NASDAQ:AMZN) to provide full-service tire installation for any brand of tires purchased on Amazon, including its DieHard brand.

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Mon, 14 May 2018 10:24:00 -0400 https://www.proactiveinvestors.com/companies/news/196941/sears-gathers-special-committee-to-review-asset-sales-including-its-kenmore-brand-196941.html
<![CDATA[News - Sears CEO says the fight to restore the struggling retailer will continue ]]> https://www.proactiveinvestors.com/companies/news/196753/sears-ceo-says-the-fight-to-restore-the-struggling-retailer-will-continue-196753.html Sears Holding Corp (NASDAQ:SHLD) CEO Eddie Lampert told investors at the annual shareholders meetings that he will continue fighting to restore the struggling retailer.

During the meeting, Lampert addressed how the company plans to face the challenges of a tough retail environment and transform itself.

The company has been able to reduce its losses, achieving positive adjusted EBITDA in the fourth quarter, and received a US$470mln boost as a result of new tax cuts to bring it to profitability.

“We also continued to right-size our store footprint and divest some real estate, capturing hundreds of millions of dollars in value,” said Lampert in a blog post. The company has sold more than US$500mln worth of real estate.

READ: Sears Auto Centers teams up with Amazon to provide full-service tire installation

In its latest annual report, Sears operated 1,002 stores compared with 1,430 stores in the previous year. Same-store sales fell more than 15%.

The company’s financials have been in decline for years. Last March, Sears issued a “going concern” warning, sparking rumors that Sears may soon file for bankruptcy protection.

Its CEO remains confident that the retailer can strengthen its financial standing.

“I’m invested in Sears Holdings – in every sense of the word. My confidence lies in the commitment of our associates, day in and day out, and the value of the company’s brands, services and convenience,” wrote Lampert.

Sears has been taking some proactive steps, adding partners like Uber and GasBuddy to its Shop Your Way membership platform. The company also introduced a “Lease It” option for customers who don’t qualify for traditional financing.

Sears Auto Centers recently teamed up with Amazon.com (NASDAQ:AMZN) to provide full-service tire installation for any brand of tires purchased on Amazon, including its own DieHard brand.

Shares of the Illinois-based company were up less than 1% to US$3.23 in Thursday pre-market trading.

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Thu, 10 May 2018 09:22:00 -0400 https://www.proactiveinvestors.com/companies/news/196753/sears-ceo-says-the-fight-to-restore-the-struggling-retailer-will-continue-196753.html
<![CDATA[News - Sears Auto Centers teams up with Amazon to provide full-service tire installation ]]> https://www.proactiveinvestors.com/companies/news/196668/sears-auto-centers-teams-up-with-amazon-to-provide-full-service-tire-installation-196668.html Sears Auto Centers (NASDAQ:SHLD) is teaming up with the retailer Amazon.com (NASDAQ:AMZN) to provide full-service tire installation for customers who purchase any brand of tires on Amazon.com.

The move, which was revealed at a yearly shareholders’ meeting in Hoffman Estates, Illinois, pushed shares in Sears up 15.4% to US$3.18 in early trade.  

The way it will work is that Amazon customers will select their tires online and choose a Sears location, where they will be shipped, as well as a preferred date and time for the tire installation.

The program will be rolled out first at 47 Sears Auto centers across Atlanta, Chicago, Dallas, Los Angeles, Miami, New York, San Francisco and Washington D.C. After this test run, the two companies have grand plans to introduce the program across the U.S.

As part of the agreement, Sears will also sell its DieHard line of tires on Amazon.com

Sears first started a relationship with Amazon.com last summer when it began selling Kenmore-branded appliances on Amazon.

News of the deal sent shares of automotive services company Monro Inc. (NASDAQ:MNRO) skidding 6.8% to US$3.85.

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Wed, 09 May 2018 11:35:00 -0400 https://www.proactiveinvestors.com/companies/news/196668/sears-auto-centers-teams-up-with-amazon-to-provide-full-service-tire-installation-196668.html
<![CDATA[News - Sears slides on poor sales even as retailer posts fourth-quarter profit due to tax benefit ]]> https://www.proactiveinvestors.com/companies/news/193251/sears-slides-on-poor-sales-even-as-retailer-posts-fourth-quarter-profit-due-to-tax-benefit-193251.html Sears Holdings Corp. (NASDAQ:SHLD) shares slid on Thursday after an initial spurt higher as the beleaguered retailer reported miserable year-end same-store sales comparisons as well as a fourth-quarter profit that was due to a large tax benefit in the period.

Sears shares were down 6% in mid-morning trading at US$2.27, having added around 5.5% early on.

The operator of Sears and Kmart stores posted net income of US$182mln, or US$1.69 a share, in the 14 weeks that ended 3 February 2018, compared to a loss of US$609mln, or US$5.67 a share in the 13 weeks that ended 28 January 2017, as the company recorded a tax benefit of US$539mln versus a tax gain of US$213mln a year earlier.

Revenue in the quarter fell 28%, to US$4.38bn from US$6.05bn. Sears said store closures accounted for more than half the decline, which was offset partly by the inclusion of an additional week of revenue in the latest fourth quarter.

Total comparable store sales dropped 15.6%, with Kmart comparable store sales declining 12.2% and Sears comparable store sales tumbling 18.1%.

Sears saw its net loss for the year narrow to US$383mln, or US$3.57 a share, in the 53 weeks that ended 3 February 2018, from its net loss of US$2.22bn, or US$20.78 a share, in the 52 weeks that ended 28 January 2017.

Revenue for the full-year was down 24.5%, to US$16.70bn from US$22.14bn the year before.The decline in revenue included a drop of about US$3.2bn in sales as a result of fewer Kmart and Sears full-line stores in operation. For the full year, comparable store sales declined 13.5%, with Kmart comparable store sales falling 11.4% and Sears comparable store sales dropping 15.2%.

CEO sees progress, but admits retailer must do more

Commenting on the results, Sears Holdings chairman and CEO Edward Lampert said the company "made progress in 2017, with a return to positive adjusted EBITDA and another quarter of year-over-year improvement in our financial results."

"We also took the actions necessary to increase our liquidity and fund our ongoing transformation of the company," Lampert said. "In addition, we entered important partnerships, such as our agreement to sell Kenmore appliances and related services through Amazon, that broaden the reach of our brands."

Nonetheless, Lampert acknowledged that to "ensure our long-term viability," Sears Holdings "must substantially improve our sales and gross margin performance, including adjustments to our business model."

Sears Holdings chief financial officer Rob Riecker said the company "has taken a number of actions to improve financial flexibility and support our operations."

"In addition to pursuing several transactions to adjust our capital structure in order to enhance our liquidity and financial position, we are taking incremental actions to further streamline our operations to drive profitability, including cost reductions of US$200mln on an annualized basis in 2018 unrelated to store closures," Riecker added.

Long-term debt still large, but smaller

As of 3 Febraury 2018, Sears Holdings said it had utilized about US$648mln of its US$1.5bn revolving credit facility due in 2020. The company said the amount available to borrow under the credit facility was approximately US$69mln due to various credit covenants, and that availability under its general debt basket was about US$102mln at the same date.

Sears Holdings put its total cash balances on US$336mln at 3 February 2018, which included restricted cash of US$154mln. The total cash balances at that date compared to US$286mln at January. 28, 2017.

Total long-term debt, consisting of long-term debt and capital lease obligations, was US$3.2bn at 3 February 2018, which was smaller than the US$4.2bn at 28 January 2017.

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Thu, 15 Mar 2018 10:02:00 -0400 https://www.proactiveinvestors.com/companies/news/193251/sears-slides-on-poor-sales-even-as-retailer-posts-fourth-quarter-profit-due-to-tax-benefit-193251.html
<![CDATA[News - Sears agrees US$100mln of new financing ]]> https://www.proactiveinvestors.com/companies/news/189815/sears-agrees-us100mln-of-new-financing-189815.html Sears Holdings Corporation (NASDAQ:SHLD) has banked US$100mln of new financing, and told investors it is seeking a further US$200mln from ‘other counterparties’.

The company has also made amendments to its lien financing arrangements, whilst auctioning a programme of cost reductions (excluding savings from store closing).

READ: Sears sells further 140 stores to fund pension plan as it reports third quarter loss

“As previously announced, we are actively pursuing transactions to adjust our capital structure in order to generate liquidity and increase our financial flexibility,” said Rob Riecker, Sears chief financial officer.

“The new capital we have secured represents meaningful progress towards those objectives and demonstrates that we continue to have options to finance our business."

Edward Lampert, chief executive, meanwhile, added: "We made significant progress in 2017 through our efforts to reset our cost base and enhance our liquidity, as well as our recently announced agreement with the PBGC to pre-fund our contributions to our pension plan for the next two years.

“The initiatives we have announced today build on those achievements and make clear our determination to remain a viable competitor in the challenging retail environment.”

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Wed, 10 Jan 2018 08:35:00 -0500 https://www.proactiveinvestors.com/companies/news/189815/sears-agrees-us100mln-of-new-financing-189815.html
<![CDATA[News - Sears' shares surge more than 25% in premarket after third quarter loss narrows ]]> https://www.proactiveinvestors.com/companies/news/188056/sears-shares-surge-more-than-25-in-premarket-after-third-quarter-loss-narrows-188056.html Sears Holdings Corp's (NASDAQ:SHLD) shares surged in premarket trade after its third quarter results which saw a narrower loss, pleased the market.

The department store chain which has been facing troubling times, said in the quarter, its net loss came in at US$558mln or US$5.19 a share, compared with a wider loss of US$748mln or US$6.99 a share, a year ago.

READ: Sears sells further 140 stores to fund pension plan as it reports third quarter loss

During the same period, revenue however fell to US$3.66bn from $5.03bn, with store closures blamed for over half of the decline.

Cuts in pharmacies at Kmart stores and the reduction of consumer electronics assortments in both Kmart and Sears stores also hit sales.

In the third quarter, same-store sales fell 15.3%. Kmart stores saw a 13.0% drop while Sears stores saw a dip of 17.0%.

As of October 28, there were a total of 510 Kmart stores and 594 Sears stores, compared with 801 Kmart stores and 702 Sears stores, a year ago.

READ: Sears to axe 400 full-time jobs in effort to cut costs as part of restructuring

In a statement, the department store said it would continue to look to diversify revenue streams through third-party partnerships, and build on momentum around appliances and mattresses.

In premarket, its shares rallied 28.27% at US%5.40.

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Thu, 30 Nov 2017 08:28:00 -0500 https://www.proactiveinvestors.com/companies/news/188056/sears-shares-surge-more-than-25-in-premarket-after-third-quarter-loss-narrows-188056.html
<![CDATA[News - Sears sells further 140 stores to fund pension plan as it reports third quarter loss ]]> https://www.proactiveinvestors.com/companies/news/186957/sears-sells-further-140-stores-to-fund-pension-plan-as-it-reports-third-quarter-loss-186957.html Department store chain Sears Holdings Corp. (NASDAQ:SHLD) said it has reached a deal to sell up to 140 further properties to pay US$407mln into its pension plan as it reported a third quarter loss.

The deal with a US government pension board amends its Pension Plan Protection and Forbearance Agreement to release 140 properties that have previously been protected from being sold under a ring-fence arrangement.

The amendment will close in about three months and the proceeds from the sale of the properties will be used to pay into its pension. Once it makes a US$407mln contribution to the pension plan, it will be relieved of its requirement to make a US$37mln quarterly payment.

Sears said it made a third quarter net loss of between US$525.0mln and US$595.0mln, compared with a loss of US$748.0mln last year. The narrowed loss came as it reached its 2017 target of cutting US$1.25bn in costs, which involved shutting hundreds of stores. 

Sales fell to US$3.7bn from US$5.0bn a year ago while same-store sales dropped 15.3%, including declines at Kmart and Sears.

Shares dropped 2.80% to US$5.0 in US pre-market trading. 

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Wed, 08 Nov 2017 14:12:00 -0500 https://www.proactiveinvestors.com/companies/news/186957/sears-sells-further-140-stores-to-fund-pension-plan-as-it-reports-third-quarter-loss-186957.html
<![CDATA[News - Sears Holdings shares rise after better-than-expected quarter ]]> https://www.proactiveinvestors.com/companies/news/182935/sears-holdings-shares-rise-after-better-than-expected-quarter-182935.html Sears Holdings Corp (NASDAQ:SHLD) advanced more than 6% in Thursday’s early dealing, after it released better-than-expected quarterly financials.

The US department store retailer reported a US$1.16 per share loss for the three months ended July 29, but, that was much better than Wall Street’s expectations for a US$2.48 loss per share.

READ: Sears sales slump not as severe as feared

Revenue was ahead of expectations at US$4.4bn, albeit lower comparable-store sales were down 11.5%. Earnings amounted to US$124mln, the company revealed.

"We are making progress on the strategic priorities we outlined earlier this year and remain focused on returning our company to profitability,” said Edward Lampert, Sears chief executive.

“The comprehensive restructuring of our operations is delivering cost efficiencies and helping drive improvements to our operating performance.

He added: “While the third quarter has historically been our most difficult quarter over the past several years, we are working towards making meaningful improvement in our performance this year as a result of the restructuring actions we have put in place, and our continued focus on the expansion of our Shop Your Way ecosystem."

In pre-market deals Sears shares were up 53 cents, 6.18%, with the stock changing hands at US$9.10 per share.

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Thu, 24 Aug 2017 09:16:00 -0400 https://www.proactiveinvestors.com/companies/news/182935/sears-holdings-shares-rise-after-better-than-expected-quarter-182935.html
<![CDATA[News - Sears to axe 400 full-time jobs in effort to cut costs as part of restructuring ]]> https://www.proactiveinvestors.com/companies/news/179157/sears-to-axe-400-full-time-jobs-in-effort-to-cut-costs-as-part-of-restructuring-179157.html US department store chain Sears Holding Corp. (NASDAQ:SHLD) plans to cut 400 jobs as part of its restructuring plans to deliver US$1.25bn in annualised cost reductions.

Sears said it will axe workers in full-time roles at its corporate offices in Hoffman, Illinois, and from its support functions. Certain positions at the group’s field operations will also be affected.

“We are making progress with the fundamental restructuring of our operations that we initiated in February," chief executive Eddie Lampert said in a statement.

"We remain focused on realigning our business model in an evolving and highly competitive retail environment. This requires us to optimize our store footprint and operate as a leaner and simpler organisation."

The retailer has so far achieved US$1bn in annualised cost savings, putting it on track to reach its US$1.25bn target.

Sears said the number of people affected by the headcount reduction represented a “small fraction” of its total workforce but was “conscious” of the impact on individual employees.

"We don't take eliminating positions lightly," a Sears spokesman told CNBC in an email.

"However, in our efforts to become a more competitive retailer and return our company to profitability, we need to look for ways to streamline the organisation.”

Last week Sears confirmed that it plans to close 66 further stores on top the 180 it announced it was shutting earlier this year. 

Sears shares lost 2.99% to $6.82.

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Tue, 13 Jun 2017 14:33:00 -0400 https://www.proactiveinvestors.com/companies/news/179157/sears-to-axe-400-full-time-jobs-in-effort-to-cut-costs-as-part-of-restructuring-179157.html
<![CDATA[News - Sears sales slump not as severe as feared ]]> https://www.proactiveinvestors.com/companies/news/178344/sears-sales-slump-not-as-severe-as-feared-178344.html Old style retailer Sears Holdings Corp (NASDAQ:SHLD) caught the market on the hop on Thursday with first quarter sales that topped expectations.

Shares opened 18% higher at US8.68 after the company’s first quarter numbers revealed it had made a quarterly profit for the first time in almost two years.

Net income for the quarter ended 29 April clocked in at US$244mln, equivalent to US$2.28 per share. Excluding one-off items, the loss per share was US$2.15 versus expectations of a loss of 71 cents.

In the same period the year before the company made a loss of US$471mln, or US$4.41 a share.

Revenue down but ahead of expectations..

Revenue of US$4.3bn was down from US$5.4bn the year before, but ahead of market expectations of US$4.1bn.

The year-on-year decline in revenues was primarily driven by having fewer Kmart and Sears Full-line stores in operation, which accounted for US$557 million of the decline.

Like-for-like sales were down 11.0% on a year earlier, which accounted for US$417 million of the decline.

"While this was certainly a challenging quarter for our company, it was also one that clearly demonstrated our commitment to return Sears Holdings to solid financial footing,” declared Edward Lampert, chairman and chief executive officer of the company.

“We recognize that we need to accelerate our efforts to improve our operational performance and are moving decisively with our US$1.25 billion restructuring program," he added.

Reducing long term debt..

Once king of the US retailers, there are serious concerns that its debt mountain will drag the company under, but the group did make some progress during the quarter in reducing its long term debt to US$3.7bn from US$4.2bn three months earlier.

The company has been holding a glorified garage sale of assets in an effort to keep its head above water; in this quarter profits were boosted by the sale of its Craftsman tools brand to Stanley Black & Decker Inc, for which it received an advance payment of US$525mln.

Cash at the end of April stood at US$264mln, down from US$286mln at the end of January.

 

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Thu, 25 May 2017 09:47:00 -0400 https://www.proactiveinvestors.com/companies/news/178344/sears-sales-slump-not-as-severe-as-feared-178344.html
<![CDATA[News - Sears Holdings slides on 'going concern' reference ]]> https://www.proactiveinvestors.com/companies/news/175228/sears-holdings-slides-on-going-concern-reference-175228.html In a nervy market, retailer Sears Holdings Corp (NASDAQ:SHLD) took a beating as it warned over its future if its latest turnaround plan falters.

A 10-k document filed yesterday included a going concern notice, even though it added its revival strategy unveiled in February to cut stores and reduce staff would be sufficient for a year at least.

“However, we cannot predict, with certainty, the outcome of our actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned,” the document added.

The embattled retailer currently has debts of US$4.2bn, up from US$3bn a year ago.

Sales at K-Mart and Sears owner have dropped by US$10bn in the last six years, while credit ratings agency Fitch has estimated the retailer needs to raise US$2bn to right itself.

Shares tumbled 11% to US$8.06.

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Wed, 22 Mar 2017 13:47:00 -0400 https://www.proactiveinvestors.com/companies/news/175228/sears-holdings-slides-on-going-concern-reference-175228.html
<![CDATA[News - Sears Holdings Corp mulling options as losses widen ]]> https://www.proactiveinvestors.com/companies/news/170204/sears-holdings-corp-mulling-options-as-losses-widen-170204.html There were more losses reported at Sears Holdings Corp (NASDAQ:SHLD), the under-the-cosh clothes retailer.

The firm revealed it had posted a net loss of $748 million for the three months to October 29, nearly 65% worse than the comparable period a year earlier.

The loss of $3.11 per share, however,  was smaller than the loss of $4.06 per share expected by Wall Street analysts.

Revenue came in above estimates, but same-store sales slid more than anticipated and the company's finance chief disappointed by saying that he could not guarantee when the company would return to profitability.

"We have fallen short on our own timetable for achieving the profitability that we believe the company is capable of generating," CFO Jason Hollar was  reported as telling a conference call.

"We cannot guarantee when we will return to profitability, but it is our intention to do so as soon as possible," he added.

The group said it would explore options for its real estate, continue closing stores and continue cutting certain products.

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Thu, 08 Dec 2016 11:24:00 -0500 https://www.proactiveinvestors.com/companies/news/170204/sears-holdings-corp-mulling-options-as-losses-widen-170204.html
<![CDATA[News - Sears racks up more losses with no end in sight ]]> https://www.proactiveinvestors.com/companies/news/126440/sears-racks-up-more-losses-with-no-end-in-sight-126440.html Sears Holdings Corp (NASDAQ:SHLD) is considering more radical moves to boost the performance of a number of businesses after another grim quarter for the retailer.

Losses widened in its first quarter to April US$471mln (US$303mln) on sales of US$5.39bn (US$5.88bn). Stripping out one-offs Sears lost US$199mln.

Sears’ branded stores saw a 7.1% like-for-like decline in sales while Kmart registered a 5% fall.

Edward Lampert, chief executive, said price cutting by rivals was taking a heavy toll on sales of clothes at both chains

“Our Sears Domestic and Kmart apparel businesses continue to be negatively impacted by a heavily promotional competitive environment."

He added the retailer is looking at partnership or distribution arrangements for the Kenmore, Craftsman and DieHard and Home Services businesses as he sees promise for these operations outside of Sears and Kmart stores.

It will also look to sell at least US$300mln of assets this half year to bolster its diminishing cash position.

Sears added that chief financial officer Robert Schriesheim is leaving the company to pursue other career opportunities, though he will stay until a replacement is found. 

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Thu, 26 May 2016 08:50:00 -0400 https://www.proactiveinvestors.com/companies/news/126440/sears-racks-up-more-losses-with-no-end-in-sight-126440.html
<![CDATA[News - A few straws for Sears to grab as losses mount ]]> https://www.proactiveinvestors.com/companies/news/122993/a-few-straws-for-sears-to-grab-as-losses-mount-122993.html Embattled retailer Sears (NASDAQ:SHLD) posted higher losses and another decline in sales as trading over the Christmas and Thanksgiving holiday again proved a challenge.

The bright spot was a slowing in the like-for-like sales decline, but they still fell over the three months by 7.1% though in the last month, January, the fall was 4.5%.

Revenues overall dropped 9.8% to US$7.3bn reflecting a chunk of store spin-offs, while one-off measures including a US$180mln write-down of the Sears brand itself sent losses spiralling to US$580mln.

On an adjusted basis without the impairments, losses were US$82mln as gross margins dropped largely due to customers shunning its clothes and textiles lines forcing it to promote heavily.

“The impact on our margin rate from the highly promotional environment had a greater impact than the comparable store sales improvements,” said Edward Lampert, chief executive.

Full year sales dropped US$6.1bn to US$25.1bn while there was an annual loss of US$1.39bn (US$1.69bn).

Lampert’s hedge fund owns 58% of the shares. Fairholme Capital Management owns a further 25% and its manager Bruce Berkowitz was today appointed to the Sears board.

When asked at the conference call if Sears had been a good investment, Berkowitz said he didn’t know yet but he felt much of the heavy lifting in terms of investment in technology and loyalty programmes now been done.

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Thu, 25 Feb 2016 09:35:00 -0500 https://www.proactiveinvestors.com/companies/news/122993/a-few-straws-for-sears-to-grab-as-losses-mount-122993.html
<![CDATA[News - Sears upbeat despite continued slide in sales ]]> https://www.proactiveinvestors.com/companies/news/115370/sears-upbeat-despite-continued-slide-in-sales-115370.html US department store operator Sears (NASDAQ:SHLD) moved back into the black in the second quarter, helped by one-off gains, but revenue continued to slide.

The retailer posted net earnings of US$208mln, versus a loss of US$573mln in the same period of last year.

The bottom line was marginally above the top end of the company's guidance range, but as Sears had previously indicated, the return to the black was boosted by one-off gains from asset sales.

Earlier in 2015, the company hived off 235 properties into a real-estate investment trust (REIT) called Seritage Growth Properties.

Positive earnings per share of US$1.84 would have been negative, equivalent to a loss per share of US$2.40 (versus market expectations of a loss per share of US$2.65), had it not been for the gain from property sales. In the same period of last year, Sears made a loss per share of US$2.76.

Domestic underlying earnings (EBITDA) were negative at US$200mln, excluding Seritage Growth Properties and rental income from a joint venture, which was at least an improvement on a loss the year before of US$298mln.

Also of concern to Sears shareholders is the continued southward trajectory of the top line, as the retailer struggles to adapt to the digital age.

Revenue for the group was down 22% year-on-year to US$6.21bn from US$8.01bn the year before, while like-for-like sales, which exclude stores opened or shut down in the precedign 12 months, fell 14% at Sears stores and declined 7.3% at Kmart stores.

Sears said the declines were driven in part by highly targeted promotional and marketing spend, and a move away from lower margin categories, such as consumer electronics.

Edward Lampert, chairman and chief executive officer of Sears, remained upbeat, however. 

"The second quarter marked our fourth consecutive quarter of improved results," he said. 

"During the quarter we completed many of the objectives we laid out to transform Holdings from a traditional, store-network based retail business model to a more asset-light, member-centric integrated retailer leveraging our Shop Your Way platform. The successful completion of these actions has positioned Sears Holdings for long-term success and is consistent with our strategy to focus on our best stores, reward our best members and pursue our best categories as part of our transformation," Lampert added. 

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Thu, 20 Aug 2015 07:42:00 -0400 https://www.proactiveinvestors.com/companies/news/115370/sears-upbeat-despite-continued-slide-in-sales-115370.html
<![CDATA[News - Sears Holdings posts smaller Q1 loss, helped by lower expenses ]]> https://www.proactiveinvestors.com/companies/news/115369/sears-holdings-posts-smaller-q1-loss-helped-by-lower-expenses-115369.html Sears Holdings (NASDAQ:SHLD), the struggling retailer run by hedge fund manager Edward Lampert, reported a smaller loss in its fiscal first quarter, after cutting expenses.

Net loss shrank to $303 million, or $2.85 per share, for the quarter ended May 2, from a loss of $402 million, or $3.79 per share, a year earlier, the Hoffman Estates, Illinois-based company said in a statement today.

Stripping out items, adjusted loss for the quarter was $2.00 per share, compared to $2.03 per share in the year-ago quarter.

Revenue fell 25.3 percent to $5.88 billion. 

The company attributed the decline in revenue to the loss in revenue of $697 million associated with Sears Canada, which was deconsolidated in October 2014.

Comparable sales at U.S. stores declined 10.9 percent in the quarter.

Sears, which has been closing stores and slashing costs to return to profitability, reported its 12th straight quarterly loss today. It cut selling, general and administrative spending by about 20 percent over the previous year, whittling down its payroll and advertising budgets. 

“During the first quarter, we made significant progress in our transformation from a traditional, store-network based retail business model to a more asset-light, member-centric integrated retailer leveraging our Shop Your Way platform," chief executive officer Edward Lampert said in the statement.

The company expects its plan to spin off 235 Sears and Kmart stores into a real estate investment trust to be approved by the Securities and Exchange Commission this week, paving the way for a rights offering to sell shares in the REIT to existing shareholders on Friday.

The retailer, which has lost $7 billion over the past four years, expects to receive about $2.6 billion in proceeds from the sale early in July.

That deal, if accomplished, should buy Sears time to pursue a revival strategy that involves a loyalty program and shrinking its presence to its best-performing stores.

Shares fluctuated between gains and losses and were last trading at $40.40, down 0.8 percent. The stock has lost 49 percent over the past five years, but was up 23 percent this year.

 

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Mon, 08 Jun 2015 09:50:00 -0400 https://www.proactiveinvestors.com/companies/news/115369/sears-holdings-posts-smaller-q1-loss-helped-by-lower-expenses-115369.html
<![CDATA[News - Sears posts 10th quarterly loss, to nearly double planned store closures ]]> https://www.proactiveinvestors.com/companies/news/104516/sears-posts-10th-quarterly-loss-to-nearly-double-planned-store-closures-58578.html Sears Holdings (NASDAQ:SHLD), the beleaguered U.S. department-store chain, reported its 10th consecutive quarterly loss and said it had nearly doubled its planned store closures to reduce costs. Shares fell.

Net loss expanded to $548 million, or $5.15 loss per share, in the three months ended Nov. 1, from $534 million, or $5.03 loss per share, a year earlier, the Hoffman Estates, Illinois-based retailer said in a statement today.

Stripping out costs of closing stores, certain tax matters and other items, the company’s per-share loss was $2.71.

Revenue tumbled 13 percent to $7.21 billion. The spinoff of Lands’ End accounted for $384 million of the decline, Sears said.

Analysts on average had recently expected a loss of $3.31 a share on revenue of $6.88 billion. Sears had said last month that its top and bottom lines would be little changed from a year earlier.

Gross margin slipped to 22.2 percent from 23.3 percent, while total expenses fell 12 percent.

Sales at existing locations fell 0.1 percent at domestic stores. Sears full-line domestic sales fell 0.7 percent, but the company noted they would have grown 1 percent excluding the impact of consumer electronics. The company’s Kmart stores posted a 0.5 percent uptick in sales, led by strength in apparel and outdoor living items.

Online sales climbed about 9 percent from a year ago

Sears also unveiled plans to close a total of 235 underperforming stores in 2014, nearly double the forecast of 130 made in August, although it had said at the time it may shutter more beyond that target. Sears said eliminating those stores should boost EBITDA by $50 million.

The company has more than 1,830 Sears and Kmart stores, down from 3,523 stores five years ago.

Shares dropped 3.1 percent to $33.24 at 10:58 a.m. in New York, extending this year’s loss to 32 percent. The stock has lost more than half its value over the past five years.

The company, once the largest U.S. retailer by revenue, has seen sales drop due to tough competition from Target (NYSE:TGT), Wal-Mart Stores (NYSE:WMT) and Home Depot (NYSE:HD). Online retailers such as Amazon.com (NASDAQ:AMZN) have also eaten into its business.

In its latest move Sears said last month it might sell up to 300 stores to a real estate investment trust (REIT), which would then lease the properties back to Sears. If completed, the move would leave it with 400 to 500 owned stores and 1,300 to 1,400 leased stores.

Sears said today that its long-term debt has declined slightly to $2.8 billion from $2.9 billion a year earlier. To date, the company has $2.2 billion in liquidity for fiscal 2014. It had about $1.5 billion available under its credit facility as of yesterday.

 

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Thu, 04 Dec 2014 11:05:00 -0500 https://www.proactiveinvestors.com/companies/news/104516/sears-posts-10th-quarterly-loss-to-nearly-double-planned-store-closures-58578.html
<![CDATA[News - Sears reports ninth straight quarterly loss, 30th quarterly sales drop ]]> https://www.proactiveinvestors.com/companies/news/102934/sears-reports-ninth-straight-quarterly-loss-30th-quarterly-sales-drop-56337.html Sears Holdings (NASDAQ:SHLD) fell Thursday after the struggling store operator reported its ninth consecutive quarterly loss as sales decreased for the 30th straight quarter.

Shares declined 6 percent to $33.82 at 9:31 a.m. in New York, extending this year's losses to 29 percent.

Net loss widened to $573 million, or $5.39 per share, in the fiscal second quarter ended Aug. 2, from $194 million, or $1.83 per share, in the year-earlier period, the Hoffman Estates, Illinois-based company said in a statement today.

Excluding items, loss was $3.00 per share.

Sears last reported a profit in its 2012 first quarter. Since then, the company has reported quarterly losses totaling nearly $3.5 billion.

Second-quarter revenue fell 9.7% to $8.01 billion year-over-year.

Analysts on average had predicted a loss of $2.63 per share and revenue of $8.13 billion.

The company attributed the results to the impact of the separation of its Lands' End clothing business, store closures and sales declines at Sears Canada (TSE:SCC).

The company's sales have been falling since 2005 amid tough competition from retailers such as Target (NYSE:TGT), Wal-Mart Stores (NYSE:WMT) and Home Depot (NYSE:HD). Online retailers such as Amazon.com (NASDAQ:AMZN) have also eaten into the company's customer base. Sears has closed about 300 stores since 2010 in an attempt to turn around its business. 

Same-store sales skidded 1.7 percent at Kmart stores in the United States in the second quarter. 

 "... [O]ur second quarter earnings are unacceptable and we are taking steps to address our performance on several levels," Chief Executive Officer Edward S. Lampert said in the statement. "There is more work to be done to get results where we expect them to be."

Sears said today that it may close more stores this year in addition to the 130 closures it has already announced. The company has trimmed its store count to 1,870 over the past 12 months, closing 166 locations in the process.

Sears also said it continues to evaluate spinning off its auto-center business and divesting itself of its 51 percent stake in Sears Canada. Earlier this year, the company, which is controlled by hedge-fund billionaire Edward Lampert, spun off its Lands' End apparel unit.

Lampert said Sears would pursue cost cuts, more investments in its "Shop Your Way" and integrated retail customer programs, and "rationalizing our physical footprint and improving pricing and promotions."

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Thu, 21 Aug 2014 09:34:00 -0400 https://www.proactiveinvestors.com/companies/news/102934/sears-reports-ninth-straight-quarterly-loss-30th-quarterly-sales-drop-56337.html
<![CDATA[News - Sears plunges after forecasting Q4 loss amid weak holiday sales ]]> https://www.proactiveinvestors.com/companies/news/99340/sears-plunges-after-forecasting-q4-loss-amid-weak-holiday-sales-51175.html Sears Holdings Corp. (NASDAQ:SHLD), which operates both its namesake Sears and Kmart stores, plunged in morning trade after forecasting a current-quarter loss and saying sales during the holiday period fell.

Sears plummeted 15 percent to a 52-week low of $36.07 at 9:37 a.m. in New York. 

The loss in the fourth quarter ending Feb. 1 will narrow to $250 million to $360 million, or $2.35 to $3.39 a share, the Hoffman Estates, Illinois-based company said in a statement yesterday.  The net loss in the year-earlier period was $489 million, or $4.61 a share.

Sears said it expects to post a loss of between $11.85 and $12.88 per share for the full fiscal year.

Sears has been shedding assets, selling locations and spinning off the smaller-format stores amid a continuing sales slump.

Same-store sales slid 7.4 percent in the current quarter through Jan. 6. The decline was 9.2 percent at U.S. Sears stores, and 5.7 percent at Kmart stores.

"The results that we posted are not nearly what we want them to be," said Chief Executive Officer Eddie Lampert in a blog that he posted on the company website. "They also overshadow all of the work that's being done by our associates, our vendors and the other businesses we work with, along with everyone who is developing better ways for us to serve our members."

Sales at the company have been falling since 2005, when Lampert merged Sears and Kmart in an $11 billion deal.

The company has closed more than 300 stores since 2010, and last month it disclosed a plan to spin off its Lands' End brand, a move that would end a rocky combination between the two companies that began when Sears bought Lands' End for $1.86 billion in 2002.

Lampert said in the blog that the company is continuing to invest in new technology that will allow customers to shop in new ways, such as through their smart phones. The investments, that are costing "hundreds of millions of dollars" annually, appear to be starting to pay off.

Sears said yesterday that it is still considering a potential separation of the company's auto centers, and the company touted efforts to close unprofitable stores as leases expire and, in some cases, accelerate closures when needed.

Sears said it will report full fourth-quarter results on or about Feb. 27.

 

 

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Fri, 10 Jan 2014 09:47:00 -0500 https://www.proactiveinvestors.com/companies/news/99340/sears-plunges-after-forecasting-q4-loss-amid-weak-holiday-sales-51175.html
<![CDATA[News - Sears jumps as company considers separating Lands’ End, Auto Center ]]> https://www.proactiveinvestors.com/companies/news/98155/sears-jumps-as-company-considers-separating-lands-end-auto-center-49332.html Sears Holdings Corp. (NASDAQ:SHLD), the unprofitable U.S. retailer, jumped to the highest in three weeks after saying it is weighing the separation of its Lands’ End and Sears Auto Center businesses from the rest of the company and selling five store leases in Canada to raise cash as it moves ahead on its turnaround efforts.

Sears Holdings gained 8 percent to $60.04 at 9:41 a.m. in New York after reaching $62.50, the highest price since Oct. 8. The stock had rallied 38 percent this year through yesterday, giving the company a market value of $5.9 billion.

Sears Holdings said in a statement today that it would likely pursue a spinoff of Lands' End and not a sale. The Hoffman Estates, Illinois-based retailer also said that it has already started repositioning Sears Auto Center around services other than tires and is evaluating strategic options for the business.

The company, which operates its namesake department-store chain and the Kmart discount retailer, anticipates closing unprofitable stores, including those locations whose leases are set to expire soon. 

Sears Holdings said comparable store sales for the twelve-week period ended Oct. 26 declined 3.7 percent.

Sears Canada Inc. (TSE:SCC) is selling five of its large urban locations back to its landlords in a deal worth C$400-million. The transaction with landlord Cadillac Fairview Corp. Ltd is expected to be completed in the next 10 business days, the embattled department-store chain said.

The stores include the company’s Toronto Eaton Centre property, as well as three other Ontario stores: Toronto’s Sherway Gardens and Markville Shopping Centre, and Masonville Place in London. 

The fifth store, at Richmond Centre in British Columbia, is co-owned by Cadillac and Ivanhoé Cambridge.

This brings the total of locations sold or pending for sale by the struggling retailer back to its landlords to 12 over the past year and a half. Sears Canada’s revenue has been declining for the last seven fiscal years. The company will operate 111 full-line department stores after Sears vacates these five stores.

“I want to acknowledge the effect that this announcement will have on our Sears associates,” Seas Canada's Chief Executive Douglas Campbell said in a separate statement today. “I appreciate the service they have given to Sears, and I thank them in advance for their assistance during the transition period ahead of us.”

Sears Canada has operated in London-Masonville since 1985, in Richmond Centre since 1989, in Markville since 1991, and in Sherway Gardens and the Toronto Eaton Centre since 2000.

Sears Canada shares leaped 7.1 percent to C$14.50, the highest price in almost two years, at 9:30 a.m. in Toronto. The stock had rallied 27 percent over the past year before today, giving the company a market value of C$1.38 billion.


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Tue, 29 Oct 2013 09:48:00 -0400 https://www.proactiveinvestors.com/companies/news/98155/sears-jumps-as-company-considers-separating-lands-end-auto-center-49332.html
<![CDATA[News - US stocks stumble ahead of key Fed meet decision ]]> https://www.proactiveinvestors.com/companies/news/97449/us-stocks-stumble-ahead-of-key-fed-meet-decision-48200.html US shares were trailing lower in early trading. The Dow Jones was down 55 to 15,475. The S&P 500 slipped four while the tech heavy Nasdaq slipped eight points to stand at 3,738.

On S&P, the biggest gainer was Adobe Systems, which was up 6.7% as Citigroup raised its price target on the stock and repeated a 'buy'.

Department store operator Sears Holding Corp was the biggest loser, down 4%.

Meanwhile in the UK, Footsie closed in the red as traders were on tenterhooks ahead of the end of the Fed's policy meeting and a crucial decision on its asset purchase programme.

The UK benchmark closed down 11 at 6,559 to mark its second successive day in the negative.

Spot gold meanwhile was US$7.84 lower at US$1,302, a near six week low for gold as investors waited for the Fed to confirm a tapering of its monetary stimulus policies.

Even though The Fed is only expected to trim its US$85bn per month bond buying policy by US$5-US$10bn, confirmation will lead to speculation that further reductions will follow.

"European markets have continued to remain on the back foot after the sUBStantial gains seen on Monday as investors sit on their hands ahead of this evening’s FOMC meeting. The temptation for investors appears to be to err on the side of caution ahead of tonight’s announcement, as we await more certainty after this evenings Fed announcement. 

"The shifting sands of expectations have continued to move over the past few days, with estimates about the extent of any tapering ranging from anywhere between $5bn and $20bn with the most emphasis expected to be on a tapering of US treasuries," said Michael Hewson, of CMC Markets.

The Fed will issue a statement outlining its plans, with many economists expecting a minor haircut for the stimulus measures.

Barclays (LON:BARC) shares were among the biggest fallers on the top flight, down 7%. But ignoring the fact it is trading ex-rights today, its shares actually picked up 1%.

Along with Lloyds (LON:LLOY), it was the most widely traded stock in London. 

Mike Van Dulken of Accendo Markets hinted that the government’s sale of a 6% stake in Lloyds swerved flooding the retail market with two big transactions by directing it at institutional buyers.

“Unlikely it was a coincidence that the LLOY placement was to institutions and not the public, with the risk of the retail market being swamped by two transactions,” he said.

“The next LLOY tranche sale by the government is now not expected until H1 2014, which would coincide nicely with VOD shareholders receiving their chunky windfall from VOD’s sale of its stake in Verizon Wireless.”

Lloyds shares picked up 2.1%.

Fresnillo (LON:FRES) suffered as UBS trimmed its target price on the silver miner after proposed changes to Mexican mining taxes.

In a note entitled ‘Taxing times’, the broker cut its target by £1 to £11.50 on the possibility of a royalty of 7.5% on earnings.

The shares lost 3.2% of their shine on Wednesday.

Smiths Group (LON:SMIN) was near the top of the index after the engineering group declared a special dividend of 30p - representing a return to shareholders of £118mln - to reflect the strength of its balance sheet.

Releasing finals, the group, which makes medical devices among other mechanical items, reported headline revenues 1 % higher and operating profit up 1%.

Over on AIM, Central Rand Gold’s (LON:CRND) move to the junior market from the main market paid off as the shares shot up 205%.

The South African gold miner received the first slice of its US$7.25mln loan from Redstone Capital as part of the listing, which will allow it to advance upgrades to its crushing and mining facilities.

“This agreement with Redstone Capital will fund the much needed upgrade to the company's production facility and will enable the continued strategy of seeking opportunities to fully maximise our current mining right area, creating value for our shareholders,” CEO Johan du Toit said.

“The board believes that a move to both AIM and AltX will provide a market and environment more suited to Central Rand Gold's current size and strategic intent to enhance shareholder value.”

Advanced Oncotherapy (LON:AVO) shares advanced more than 8% on Wednesday as it announced it will bring its revolutionary cancer treatment to patients in New York state. 

Through a collaboration with State University of New York (SUNY), the company will establish a three-room proton therapy facility in Syracuse, New York.

Cyan Holdings (LON:CYAN) shares rose over 3% after it extended its reach in Brazil with a smart metering agreement, adding to its recent deal to provide Brazil’s streets with energy-efficient lighting.

Today’s deal with Nobre de la Torre will see the new partners jointly develop hardware and software solutions for Brazil’s power market, which is forecast to reach nearly $50 billion by 2023.

Sirius Minerals (LON:SXX) also advanced after it unveiled a maiden reserves report for its flagship York Potash project in the UK.

It is stated that the project has 250 million tonnes of probable polyhalite reserves with a mean grade of 87.8%.

Meanwhile, indicated mineral resources were estimated at 820mln tonnes, with an average grade of 87.3% - this estimate is derived from just 1% of the project area of interest.

Shares in AIM-listed Oxford Pharmascience (LON:OXP) received a shot in the arm when it revealed first-half revenues jumped 47% as it refocused the business on drug re-development.

The £501,000 generated in the six months to June 30 outstripped the total revenues from 2012, while the loss before tax increased slightly to £585,000, from £399,000 the year before.

It came as the company opted to redevelop existing oral drugs to make them better and easier to take instead of the previous emphasis on its technology platforms.

Shares in Anglesey Mining (LON:AYM)also raced up on Wednesday as its Canadian associate Labrador Iron Mines finalised a deal with major steel firm Tata, which will see a C$30mln cash injection into LIM.

As previously reported, the pair announced a joint venture agreement to explore and develop the Howse iron ore deposit in the Schefferville region.

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Wed, 18 Sep 2013 11:42:00 -0400 https://www.proactiveinvestors.com/companies/news/97449/us-stocks-stumble-ahead-of-key-fed-meet-decision-48200.html
<![CDATA[News - Sears erases 2013 gains after posting steeper 2Q loss ]]> https://www.proactiveinvestors.com/companies/news/96983/sears-erases-2013-gains-after-posting-steeper-2q-loss-47332.html Sears Holdings Corp. (NASDAQ:SHLD), which operates its namesake department-store chain and the Kmart discount retailer, erased this year's gains after reporting a worse-than-expected loss in the second quarter as store closings hurt sales and bigger discounts weakened margins.

The shares fell 8.4 percent to $39.57 at 10:10 a.m. in New York after touching $39.06, the lowest price since Dec. 28. The stock had gained 4.6 percent before today.

The net loss for the three months ended Aug. 3 widened to $194 million, or $1.83 a share, from $132 million, or $1.25 a share, in the year-earlier period, the Hoffman Estates, Illinois-based company said in a statement today. 

Stripping out unusual items, the loss was $1.46 a share, worse than the $1.10 a share analysts on average were calling for.

Revenue dropped 6 percent to $8.87 billion, mostly because of store closings, the company said.

Sales at U.S. stores open for at least 13 months, a measure of retail performance because it strips out the effect of stores that open or close during the year, skidded 1.5 percent, with declines of 2.1 percent at Kmart and 0.8 percent at Sears Domestic. Same-store sales at its Canadian unit slid 2.5 percent. Online sales jumped 20 percent.

Gross margin, the portion of sales left after subtracting the cost of goods sold, dropped to 24.6 percent in the second quarter from 26.7 percent a year earlier.

"I am disappointed that we did not deliver a better result," Chief Executive Officer Eddie Lampert, who took over earlier this year, was quoted in the statement as saying.

Sears struggles as middle-income shoppers have been hit hard by a bumpy economy. The company has posted six consecutive years of falling sales at same stores. Sears' competitors Wal-Mart Stores Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT) reported downbeat second-quarter results and full-year forecast. 

Sears Holdings operates 2,500 stores in the U.S. and Canada.

 

 

 

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Thu, 22 Aug 2013 10:04:00 -0400 https://www.proactiveinvestors.com/companies/news/96983/sears-erases-2013-gains-after-posting-steeper-2q-loss-47332.html
<![CDATA[News - Sears shares rise as CEO steps down, Lampert takes reigns ]]> https://www.proactiveinvestors.com/companies/news/92233/sears-shares-rise-as-ceo-steps-down-lampert-takes-reigns-39130.html Sears Holdings Corp. (NASDAQ:SHLD) late Monday announced that CEO Louis J. D'Ambrosio will step down, with shares rising premarket as the company said it expects to narrow its loss in the fourth quarter.

Shares were lately up 2.52 per cent, trading at $44.

D'Ambrosio will step down as CEO for family health matters at the end of the company's fiscal year on February 2, and board chairman and hedge fund manager Edward S. Lampert will then assume the role of chief. Lampert has been trying to affect a turnaround for the department store chain. 

Lampert credited D'Ambrosio with guiding the company through “a time of rapid industry change” and said Sears remains focused on improving operations and building sustainable long-term value for shareholders.  

For the fourth quarter that ended February 2, the company expects to report a net loss of between $280 and $360 million or between $2.64 and $3.40 per diluted share, compared to a loss of $2.4 billion or $22.63 per diluted share a year earlier.  

Adjusted for pension expenses, net income is expected to be between $132 and $212 million, or between $1.25 and $2.00 per diluted share, compared to $58 million or 54 cents per diluted share, in the year-ago period.

Adjusted net loss for the year is expected to be between $123 and $203 million or between $1.16 and $1.92 loss per diluted share, compared to an adjusted loss of $482 million or $4.52 per diluted share a year ago.

Separately, the company in an update noted that same-store sales fell 1.8-per-cent in the nine week period that ended December 29, as a result of sales declines in the consumer electronics category at both Sears and Kmart.  

Excluding the consumer electronics category, total comparable stores sales decreased 0.2 per cent, with Sears domestic sales increasing 2.4 per cent and Kmart decreasing 2.4 per cent.

Sears domestic and Kmart online sales increased roughly 20 per cent, the company said, with the largest growth occurring in multi-channel transactions, which now make up about half of its online business.

The company noted that declines for its Canadian operations were affected by a drop in electronics sales, as well as by the impacts of unseasonably warm temperatures. Canadian same store sales for the quarter were down 5.8 per cent.

Looking ahead to fiscal 2013, Sears said it expects to reduce 2013 peak domestic inventory by $500 million from the 2012 level of $8.6 billion at the end of the third quarter. This action is expected to generate $300 million of cash and reduce its fixed cost base by $200 million. 

The company currently plans to release financial results for its fiscal 2012 fourth quarter and full year on February 28, before the market opens.

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Tue, 08 Jan 2013 09:07:00 -0500 https://www.proactiveinvestors.com/companies/news/92233/sears-shares-rise-as-ceo-steps-down-lampert-takes-reigns-39130.html
<![CDATA[News - Sears Holdings Q3 adjusted loss narrows despite decline in same-store sales ]]> https://www.proactiveinvestors.com/companies/news/91265/sears-holdings-q3-adjusted-loss-narrows-despite-decline-in-same-store-sales-37420.html  

Sears Holdings Corp. (NASDAQ:SHLD) shares fell Friday, a day after it narrowed its third quarter adjusted net loss, though revenue and same-store sales declined.

Shares fell 7.92 per cent as at about 9:30 a.m. EDT on Friday, trading at $53.85.

For the quarter that ended October 27, the company posted a net loss of $498 million or $4.70 per diluted share, compared to a loss of $410 million or $3.85 per diluted share year earlier. 

Excluding one-time items related to tax expenses, store closings and pension expense, per share loss was $1.99, compared with a loss of $2.55 per share in the year-ago quarter.

Revenues decreased to $8.9 billion from $9.4 billion a year earlier. The company said the decline in revenue was primarily due to the effect of having fewer Kmart and Sears full-line stores in operation and lower domestic same-store sales for the quarter. 

Analysts polled by Thomson Reuters expected a per share loss of $2.18, on revenues of $8.59 billion.

"For the third quarter and year-to-date, we improved EBITDA [earnings before interest, taxes, depreciation, and amortization], accelerated our strategic actions and generated significant cash by delivering on the actions we outlined at our annual meeting,” said president and CEO Lou D'Ambrosio.

D'Ambrosio noted that EBITDA improvement came from categories like appliances, apparel and home services, while the company “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,” he said.

The department store chain, which also owns a majority stake in Sears Canada (TSE:SCC), said overall same-store sales in the U.S. were down 3.1 per cent, comprised of declines of 1.6 per cent at Sears stores and 4.8 per cent at Kmart. 

Comparable sales are a key metric used to measure a retailer’s health as they exclude sales from stores that recently opened or closed during the year.

Sears Canada's comparable store sales decreased 5.7 per cent, primarily due to sales decreases in snow throwers, women's apparel, electronics, men's apparel and home decor, the company said.

Gross margin edged down to 25.4 per cent from 25.5 per cent, due to the decline in overall sales.

Earlier this year, Sears laid out a number of actions design to improve its performance, including the closure of some stores and tightly managed inventory.

The retailer, which sells everything from home appliances to TVs, clothing and bedding, announced in May it would spin off a stake in its Canada division in a bid to focus on its U.S. business.

Sears already completed the separation of Sears Hometown and Outlet Stores, Inc. in October, raising $446.5 million in gross proceeds.

The company added that a 45-per-cent spin-off of Sears Canada to its shareholders closed on November 13.

“We intend to continue to be proactive in generating at least $500 million in additional liquidity over the next 12 months through selective actions that are consistent with our focus on creating long term value,” said CFO Rob Schriesheim in a release late Thursday.

“The exact form and amount will depend on specific circumstances and opportunities, including market conditions."

Sears Canada earlier this week said it narrowed its third quarter net loss, despite a 6.8-per-cent decline in revenues due to what it called a "significant reduction" in promotional and clearance sales. 

 

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Fri, 16 Nov 2012 09:32:00 -0500 https://www.proactiveinvestors.com/companies/news/91265/sears-holdings-q3-adjusted-loss-narrows-despite-decline-in-same-store-sales-37420.html
<![CDATA[News - Sears Holdings expects proceeds of $446.5 mln after Hometown spin-out ]]> https://www.proactiveinvestors.com/companies/news/90210/sears-holdings-expects-proceeds-of-4465-mln-after-hometown-spin-out-35702.html  

Sears Holdings Corp. (NASDAQ:SHLD) expects to get $446.5 million in gross proceeds after it completed the spinout of its Sears Hometown and Outlet Stores. 

The Hoffman Estates, Illinois-based retailer said preliminary results show over 95 per cent of Sears Hometown stock was subscribed. The rights offering expired Monday. 

Sears plans to distribute 23.1 million shares to subscription rights holders. 

As part of the deal, Sears Hometown will enter into a senior secured revolving credit facility worth $250 million. Sears Hometown will then draw $100 million to pay a cash dividend to Sears Holdings before separating from the company.

Apart from the Sears Hometown spin-out, the department store chain said in May it plans to spin off a stake in its Canada division. 

Sears Hometown expects to trade on the NASDAQ under the "SHOS" ticker on October 12, 2012.

Shares of Sears Holdings notched up 0.03 per cent to reach $58.60 apiece Tuesday Morning.

 

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Tue, 09 Oct 2012 11:02:00 -0400 https://www.proactiveinvestors.com/companies/news/90210/sears-holdings-expects-proceeds-of-4465-mln-after-hometown-spin-out-35702.html
<![CDATA[News - Sears Holdings sets distribution date for Sears Hometown spin out ]]> https://www.proactiveinvestors.com/companies/news/89427/sears-holdings-sets-distribution-date-for-sears-hometown-spin-out-34485.html

Board members of Sears Holdings Corp. (NASDAQ:SHLD) set Tuesday as the distribution date for the spin-out of its Sears Hometown and Outlet business to shareholders, the department store retailer said late Friday.

According to the statement, Sears Holdings will distribute transferable subscription rights to its stakeholders this Tuesday. 

The rights will entitle holders of Sears Holdings common stock to make pro-rata purchases of Sears Hometown stock.

Each right will entitle the holder to buy 0.218091 of a share of Sears Hometown common stock. 

The exercise price of the subscription rights will be $15 per whole share of Sears Hometown.

Sears noted that holders of subscription rights, who fully exercise their rights, may also make a request to buy more shares of Sears Hometown through an over-subscription privilege. 

The subscription rights are expected to begin trading on the Nasdaq under the moniker "SHOSR", this Wednesday.  

After the separation, Sears Holdings will remain listed on the Nasdaq under its previous symbol "SHLD."

The retailer said it expects its shares to trade with an entitlement to subscription rights until an ex-dividend date has been arranged by Nasdaq. 

Sears reported in late August that it would separate its Sears Hometown and Outlet Stores Inc. business.

The ailing retailer was recently replaced by LyondellBasell Industries (NYSE:LYB), a Dutch-based chemicals company, in the S&P benchmark index. 

Sears' public float, or the amount of shares available to the public, has been well below the 50 per cent threshold for a prolonged period and is no longer considered to be "representative of the index," the S&P said. 

Last month, Sears narrowed its fiscal second-quarter net loss, though revenue continued to lag amid a decline in same-store sales growth.

The U.S. department store chain, which also plans to spin off its stake in Sears Canada (TSE:SCC), said net loss amounted to $132 million, or $1.25 per share. 

This was down from a year-earlier net loss of $152 million, or $1.42 per share, for the same year-ago period.

Shares closed Friday at $58.18, up 1.41 per cent.

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Mon, 10 Sep 2012 08:47:00 -0400 https://www.proactiveinvestors.com/companies/news/89427/sears-holdings-sets-distribution-date-for-sears-hometown-spin-out-34485.html
<![CDATA[News - Sears Holdings shares drop after removed from benchmark S&P index ]]> https://www.proactiveinvestors.com/companies/news/89180/sears-holdings-shares-drop-after-removed-from-benchmark-sp-index-34074.html

Sears Holdings Corp.'s (NASDAQ:SHLD) stock fell 7.52 per cent Thursday, one day after the S&P reported LyondellBasell Industries (NYSE:LYB), a Dutch-based chemicals company, would replace the ailing retailer from its benchmark index.

The Hoffman, Illinois-based department store retailer's stock fell 7.52 per cent to $53.13 on the Nasdaq Thursday afternoon. 

Despite the drop today, the retailer's stock has risen 67.18 per cent for the year so far. 

S&P, which is owned by McGraw Hill Co. (NYSE:MHP), said late Wednesday the retailer will exit the index on Tuesday, September 4. 

Sears' public float, or the amount of shares available to the public, has been well below the 50 per cent threshold for a prolonged period and is no longer considered to be "representative of the index," the S&P said. 

LyondellBasell makes and sells chemicals and polymers. It also refines crude oil and produces gasoline blending components.  Headquartered in Rotterdam, the company will be added to the S&P Global Industry Classification Standard.

Earlier this month, Sears reported a narrower fiscal second-quarter net loss, though revenue continued to lag amid a decline in same-store sales growth.

The U.S. department store chain, which also owns a majority stake in Sears Canada (TSE:SCC), said net loss amounted to $132 million, or $1.25 per share. This was down from a year-earlier net loss of $152 million, or $1.42 per share, for the same year-ago period.

Excluding special items, the company posted an adjusted loss of 86 cents per share in the latest quarter.

Revenue slipped to $9.46 billion, down from $10.1 billion a year ago. The company said this was due to lower sales at stores open at least one year, and fewer Kmart and Sears stores in operation. Total same store sales dropped 3.7 per cent.

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Thu, 30 Aug 2012 12:50:00 -0400 https://www.proactiveinvestors.com/companies/news/89180/sears-holdings-shares-drop-after-removed-from-benchmark-sp-index-34074.html
<![CDATA[News - Sears Holdings narrows Q2 loss, revenue drops ]]> https://www.proactiveinvestors.com/companies/news/88748/sears-holdings-narrows-q2-loss-revenue-drops-33388.html Sears Holdings Corp. (NASDAQ:SHLD) narrowed its fiscal second-quarter net loss Thursday, though revenue continued to lag amid a decline in same-store sales growth.

The U.S. department store chain, which also owns a majority stake in Sears Canada (TSE:SCC), said net loss amounted to $132 million, or $1.25 per share.

This is down from a year-earlier net loss of $152 million, or $1.42 per share, for the same year-ago period.
Excluding special items, the company posted an adjusted loss of 86 cents per share in the latest quarter.

Revenue slipped to $9.46 billion, down from $10.1 billion a year ago. The company said this was due to lower sales at stores open at least one year, and fewer Kmart and Sears stores in operation.

Analysts polled by Bloomberg expected a per-share loss of 96 cents, on $9.6 billion in sales for the quarter that ended July 28.

Shares, in Tuesday pre-market trade, rose 2.49 per cent to reach $58.01 on the Nasdaq.

“We continue to make progress against the priorities outlined in our fourth quarter earnings release,” chief executive Lou D’Ambrosio said in a statement.

“In particular, we have improved our profit position, reduced expenses and expanded margin rate through more effective promotional design.”

In the latest quarter, total same store sales dropped 3.7 per cent.

In the U.S., same-store sales fell 2.9 per cent. Sales for Kmart stores open at least one year declined 4.7 per cent.

Comparable sales are a key metric used to measure a retailer’s health as they exclude sales from stores that recently opened or closed during the year.

Sears said the decline stemmed from lower clearance sales in the apparel category, as the consumer electronics category continues to be hurt by price compression.

It added that lawn and garden sales declined due to drought conditions experienced across the country.

Gross margin widened to 26.7 per cent from 25.7 per cent, thanks largely to lower clearance in the apparel business.

The company spent less on selling and administrative expenses, which declined $123 million to $2 billion, due to decreases in payroll and advertising expenses, which were partially offset by higher pension costs.

Merchandise inventory fell to $8.7 billion from $9.3 billion in the quarter. U.S. inventory fell to $7.9 billion, driven by improved productivity and store closures.

The retailer, which sells everything from home appliances to TVs, clothing and bedding, announced in May it would spin off a stake in its Canada division in a bid to focus on its U.S. business. The spinoff is slated to close in the second half of the year.

Sears Canada, a publicly traded company that is 93 per cent owned by Sears Holdings, posted a wider fiscal second-quarter loss yesterday amid a sharp decline in same-store sales.

The department store chain reported a bigger net loss of $9.8 million, or 10 cents per share, compared with a loss of $200,000, or breakeven per share, in the year earlier period.

Revenue, for the 13 weeks that ended July 28, slipped to $1.05 billion. That is down 8.5 per cent from the $1.14 billion, a year-ago.

Same-store sales tumbled 7.1 per cent in the latest quarter.

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Thu, 16 Aug 2012 09:23:00 -0400 https://www.proactiveinvestors.com/companies/news/88748/sears-holdings-narrows-q2-loss-revenue-drops-33388.html
<![CDATA[News - Sears Holdings swings to Q1 profit, to partially spin out Sears Canada interest ]]> https://www.proactiveinvestors.com/companies/news/86279/sears-holdings-swings-to-q1-profit-to-partially-spin-out-sears-canada-interest-29250.html Retailer Sears Holding Corp. (NASDAQ:SHLD) swung to a first quarter profit thanks to a hefty gain from the sale of some U.S. and Canadian stores, and said Thursday it also plans to spin-off a large portion of its stake in Sears Canada (TSE:SCC).

Quarterly profit shot up to $194 million, or $1.78 per share, compared with a year-earlier net loss of $174 million, or $1.58 per share.

Removing a $233 million gain from the sale of some U.S. and Canadian stores, Sears reported a narrowed loss of 31 cents a share, versus $1.34 a share, a year-ago.

Revenue was $9.27 billion, down from $9.54 billion, mainly due to fewer Kmart and Sears stores, and lower comparable store sales.

On average, analysts had expected a wider per-share net loss of 65 cents, on $9.3 billion in sales, according to Bloomberg.

"We are pleased with the results for the first quarter and our progress towards restoring profit growth and transforming our company," chief executive Lou D'Ambrosio said in a statement.

In the U.S., same-store sales fell one percent. Sales at established Kmart stores dropped 1.6 percent. For Sears Canada, the metric slipped 6.3 percent.

Sears said both Kmart and its namesake store achieved double-digit increases in clothing and footwear, but these gains were offset by declines in home appliances and consumer electronics.

Same store sales are a key measure to gauge a retailer’s financial health as it excludes sales from stores that recently opened or closed during the year.

Gross margins widened to 27.7 percent from 26.7 percent, thanks to an increase in higher-margin apparel sales, the company said.

Separately, the department chain retailer said it plans to partially spin-off its interest in Sears Canada, as it seeks to allocate its resources and best optimize returns on assets.

Presently, Sears owns about 95 percent of Sears Canada and would still hold about 51 percent after the spin-off, which it expects to complete this year.

In the next few months, Sears Canada is expected to file documents to the U.S. Securities and Exchange Commission and the Canadian Securities Administrators.

"While we have benefited from a close relationship with Sears Holdings, we believe this distribution would provide an increased focus on our performance as an independent company and enhance the liquidity of holders of Sears Canada's common shares," CEO Calvin McDonald of Sears Canada said.

Following the spin-off, Sears Canada will continue to be listed on the Toronto Stock Exchange.  The transaction is subject to a number of conditions, including approval of securities filings by the board of directors of Sears Canada, review by the relevant securities regulators and final approval of Sears Holdings' board of directors.

Sears Holdings said it believes that the spin-off will provide investors with a more targeted investment opportunity by having equity in two separate public companies.

In pre-market trade, Sears Holdings share price jumped 7.35 percent to $54.61 each on the Nasdaq on Thursday.

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Thu, 17 May 2012 09:06:00 -0400 https://www.proactiveinvestors.com/companies/news/86279/sears-holdings-swings-to-q1-profit-to-partially-spin-out-sears-canada-interest-29250.html
<![CDATA[News - Sears expects Q1 profit, same stores sales decline ]]> https://www.proactiveinvestors.com/companies/news/85789/sears-expects-q1-profit-same-stores-sales-decline-28489.html Sears Holding Corp. (NASDAQ:SHLD) said Tuesday it expects a first-quarter profit due to an after-tax gain from the sale of some of its U.S. and Canadian stores, though comparable-store sales are anticipated to fall.

The news sent the retailer’s share price up by 4.33 percent, climbing to $56.11 each on the Nasdaq in pre-market trade Tuesday.

The department store retailer expects earnings from continuing operations of between $155 million, or $1.46 a share, to $195 million, or $1.84 per share, in the first quarter.

This compares with a net loss from continuing operations of $165 million, or $1.53 a share, in the same period a year-earlier.

Sears said the preliminary results include a hefty $400 million, or $235 million after-tax, gain from the sale of some of its U.S. and Canadian stores. The store sales generated $440 million in proceeds.

Analysts polled by Bloomberg expected to see a net loss of $1.89 per share in the latest quarter.

In the U.S., the company said preliminary revenue from established Kmart stores fell 1.6 percent, while same store sales at Sears locations dropped one percent. Overall, total comparable sales in the US are expected to fall 1.3 percent.

Comparable store sales are considered to be a key metric used to measure a retailer’s financial health as they exclude sales from stores that recently opened or closed during the year.

While US Sears stores experienced an overall sales decrease, the company said it did achieve double-digit growth in its apparel and footwear categories.

These increases were offset by a high single-digit decline in the appliances and double-digit decline in the consumer electronics categories.

Kmart's comparable store sales decrease reflects increases in the apparel and footwear categories, offset by declines in the consumer electronics category, the company said.

The department store retailer also said that Sears Canada expects to report a decline of 6.2 percent in same store sales for the quarter, primarily due to sales decreases in electronics, home décor, hardware and apparel.

Last month, Sears Holdings wrapped-up a $270 million deal to sell 11 of its stores to General Growth Properties.

Prior to that, Sears announced in February that it will spin off its Hometown, Outlet and hardware businesses in a move that would raise between $400 to $500 million.

Sears is slated to report first-quarter earnings on May 17.

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Tue, 01 May 2012 09:09:00 -0400 https://www.proactiveinvestors.com/companies/news/85789/sears-expects-q1-profit-same-stores-sales-decline-28489.html
<![CDATA[News - Sears Holdings swings to Q4 loss, to sell 11 stores ]]> https://www.proactiveinvestors.com/companies/news/83940/sears-holdings-swings-to-q4-loss-to-sell-11-stores-25345.html Department store chain Sears Holdings Corp. (NASDAQ:SHLD) said Thursday it swung to a fourth quarter net loss as revenue dropped amid weaker margins and lower sales at established stores. The company also unveiled plans to sell 11 stores.

For the 13-weeks that ended January 28, Sears Holdings posted a 3.8 percent drop in sales to $12.4 billion from $13 billion last year.

The company said the decline was a result of lower sales at established stores and fewer Kmart and Sears full-line stores in operation.

Sears swung to a loss of $2.4 billion, or $22.47 per share, in the latest period, compared with a year-ago profit of $374 million, or $3.43 per share.

Excluding one-time items, such as goodwill impairment charges, store closures, severance and other significant items, adjusted earnings were 54 cents a share.

Analysts polled by Bloomberg were predicting earnings of 78 cents a share, and revenues of $12.4 billion.

In a statement, chief executive, Lou D’Ambrosio, said: "We are taking immediate actions to improve business operations and accelerating our actions to lead in integrated retail."

For the quarter, the company reported that same-store sales fell 4.1 percent at Sears domestic stores and slipped 2.7 percent at Kmart stores.

Same store sales are considered to be a key measure to gauge a retailer’s financial health as it excludes sales from stores that recently opened or closed during the year.

Total online sales, which include orders online, pickups in store as well as direct shipping, increased by 12.6 percent in the quarter.

Selling, general and administrative costs grew to $2.9 billion, as the company spent more on advertising, insurance and store closing expenses, it said.

Gross margin narrowed to 24.5 percent from 27.9 percent a year earlier.

At the end of its fiscal year, the company had $3.2 billion in liquidity, and access to another $1 billion as part of its credit agreement, chief financial officer Rob Schriesheim said.

In a separate statement, the department store retailer said it plans to sell 11 stores for $270 million and to reduce inventory by $580 million.

The transaction is slated to close in 45 to 60 days, subject to customary closing conditions. The stores will continue to run as Sears locations into 2013, as the company will announce closing dates later this year.

In addition, the company said it plans to separate its Sears Hometown and Outlet businesses and certain hardware stores, through a proposed rights offering that is expected to raise around $400 to $500 million.

The rights will entitle holders to purchase shares in the combined Sears Hometown and Outlet Stores businesses and certain hardware stores and will be transferred to holders of Sears Holdings common stock.

Sears Holdings is one of the largest broadline retailers with over 4,000 full-line and specialty retail stores in the United States and Canada.

The company’s share price went up 12.65 percent to $58.67 in pre-market trade on the Nasdaq on Thursday.

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Thu, 23 Feb 2012 09:16:00 -0500 https://www.proactiveinvestors.com/companies/news/83940/sears-holdings-swings-to-q4-loss-to-sell-11-stores-25345.html
<![CDATA[News - Sears to close up to 120 stores as comparable sales drop ]]> https://www.proactiveinvestors.com/companies/news/82474/sears-to-close-up-to-120-stores-as-comparable-sales-drop-22906.html Sears Holdings (NASDAQ:SHLD) said Tuesday it plans to close up to 120 stores in an effort to reduce on-going expenses, as its comparable store sales for the quarter-to-date period have shed over five percent.

The retail giant said it will close between 100 and 120 Kmart and Sears Full-Line locations, and expects to generate between $140 and $170 million in cash as the net inventory of these stores is sold off.

Sears also said it expects to generate additional cash proceeds from the sale or sub-lease of the related real estate. The specific store locations to be closed have yet to be determined.

"Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model," commented CEO Lou D'Ambrosio.

"These actions will better enable us to focus our investments on serving our customers and members through integrated retail - at the store, online and in the home."

Excluding the effect of the store closures, Sears said it expects to reduce 2012 peak domestic inventory by $300 million from the 2011 level of $10.2 billion at the end of the third quarter, as it implements cost decreases in apparel, tighter buys, and a lower inventory position at the start of the fiscal year.

It will also reduce fixed costs by between $100 and $200 million, though it didn't specify a plan, and focus on improving gross profit through more targeted pricing and promotion.

Sears also said it intends to carefully evaluate store performance going forward, as in the past, it has kept stores that have been "marginally performing" open while working to improve performance. However, in the current economic environment, it said it believes that this course of action is no longer appropriate.

For the eight week period that ended December 25, Sears said total comparable store sales, or those of locations open at least one year, dropped 5.2 percent, including a 4.4 percent decrease at Kmart locations, largely due to lower electronics and apparel sales, and a six percent drop at domestic Sears locations, mainly on lower electronics and home appliance sales.

For the year-to-date, total same store sales fell 2.6 percent, including a 1.8 percent drop at Kmart, and a 3.3 percent decline at domestic Sears locations.

As a result, the company expects fourth quarter adjusted EBITDA to be less than half of last year's $933 million.

Sears also anticipates recording a non-cash charge between $1.6 and $1.8 billion in the fourth quarter, related to a valuation allowance on certain deferred tax assets, as well as a non-cash impairment charge between $1.6 and $2.4 billion.

The Hoffman Estates, Illinois-based company said it plans to release its fourth quarter and full year financial results before markets open on or about February 23, 2012.

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Wed, 28 Dec 2011 15:40:00 -0500 https://www.proactiveinvestors.com/companies/news/82474/sears-to-close-up-to-120-stores-as-comparable-sales-drop-22906.html
<![CDATA[News - Sears to spin off Orchard Supply Hardwore Stores interest ]]> https://www.proactiveinvestors.com/companies/news/82139/sears-to-spin-off-orchard-supply-hardwore-stores-interest-22407.html Sears Holdings (NASDAQ:SHLD) said Monday that its board has approved the spin-off of its interest in Orchard Supply Hardware Stores.

The company will distribute all of the Orchard Class A common stock and Series A preferred stock on a pro rata basis, to Sears shareholders.

The distribution will be made on December 30 to shareholders of record as of the close of business on December 16.

Every 22.141777 shares of Sears common stock held as of December 16 will entitle the holder to one share of Class A common stock and one share of preferred stock.

Following the spin-off, Sears will continue to be listed on the Nasdaq under the symbol "SHLD," while Orchard expects to list its Class A common shares on the same market under the symbol "OSH", with preferred stock to be quoted on the OTCQB.

Sears said it expects the spin-off to be tax-free to shareholders for US federal income tax purposes.

Once the transaction is completed, Sears will no longer have any interest in Orchard.

Sears is the nation's fourth largest broadline retailer, with over 4,000 full-line and specialty retail stores in the United States and Canada.

Orchard Supply Hardware is a California-based "Do-It-Yourself" home and garden retailer. Headquartered in San Jose, California, it has nearly 100 locations throughout the state of California. The company was purchased by Sears in 1996, and in 2005 sold a 19.9 percent interest to Ares Management of Los Angeles.

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Mon, 12 Dec 2011 15:31:00 -0500 https://www.proactiveinvestors.com/companies/news/82139/sears-to-spin-off-orchard-supply-hardwore-stores-interest-22407.html
<![CDATA[News - Sears Holdings Q3 misses views, as losses widen on weak sales ]]> https://www.proactiveinvestors.com/companies/news/81510/sears-holdings-q3-misses-views-as-losses-widen-on-weak-sales-21227.html Sears Holdings (NASDAQ:SHLD) said Thursday its third quarter losses widened, missing Street estimates, as it reported declines at Sears Canada, and in its Kmart apparel and consumer electronics products units.

The company that owns Sears and Kmart department stores across Canada and the U.S. posted a net loss of $421 million or $3.95 loss per share, for the three months that ended October 29, compared to a $218 million loss, or $1.98 loss per share, a year ago.

Adjusted for certain one-time items, including hurricane losses, store closures, pensions, and a state tax valuation allowance, loss for the quarter was $2.57 per share, wider than the $2.24 per share loss analysts polled by Bloomberg Businessweek anticipated.

Revenues fell more than one percent to $9.57 billion, from $9.68 billion in the same period last year, but still above analysts' $9.5 billion estimate.

"While we are not satisfied with our performance, we saw improvement in some core areas," commented president and CEO, Lou D'Ambrosio.

"Sears Full-line Stores saw improvement, as Sears apparel achieved both comparable store sales and margin rate increases in the quarter.

"We also saw nearly 20% growth in our domestic online business, and while appliance sales declined in the quarter, we improved our market leadership positions in overall appliances and Kenmore.

"Despite improvement in these areas, our overall results were down, led by declines in Sears Canada, consumer electronics and Kmart apparel."

Selling and administrative expenses rose two percent to $2.68 billion during the quarter, stemming from a $9.0 million charge related to currency translation, a $16 million charge related to severance expenses in Canada, and a $21 million cost from domestic advertising campaigns.

Total costs and expenses rose by one percent to $10.02 billion, as Sears Holdings posted a $65 million expense related to U.S. pension plans, store closings, and severance packages, it said.

Gross margins shed 80 basis points to 25.6 percent, from 26.4 percent in the year-ago period.

The company's Kmart brands had total revenues of $3.34 billion, down little more than one percent, as the company closed three Kmart locations. Kmart was also impacted by lower revenues in apparel, and in its pharmacy departments, as consumers purchased more generic drugs.

The Sears domestic segment posted revenues of $5.11 billion, down one percent, driven by lower sales in appliances and consumer electronics, partially offset by increased sales in apparel and home.

Meanwhile, Sears Canada sales fell four percent to $1.11 billion, despite an additional 44 locations.

Comparable store sales, or those of locations open for at least one year, fell 0.7 percent at Sears US stores, while dropping 0.9 percent at Kmart stores, and down a whopping 7.8 percent at Sears Canada locations.

Still, online sales from Sears.com and kmart.com increased 19 percent, the company said.

D'Ambrosio added: "As we examine every part of our business and take actions to improve our near term performance, we are also investing in our future.

"We believe it is becoming more and more obvious that the future of retail will revolve around the seamless integration of online and offline experiences.

"Sears Holdings has the combination of assets that will allow us to play a large and important role in bringing these experiences to all Americans through Integrated Retail."

In pre-market trade Thursday, shares were down more than five percent to $64.85.

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Thu, 17 Nov 2011 09:12:00 -0500 https://www.proactiveinvestors.com/companies/news/81510/sears-holdings-q3-misses-views-as-losses-widen-on-weak-sales-21227.html
<![CDATA[News - Sears disappoints, as Q2 losses grow on store closures ]]> https://www.proactiveinvestors.com/companies/news/79237/sears-disappoints-as-q2-losses-grow-on-store-closures-17372.html Sears Holdings Corp (NASDAQ:SHLD) announced Thursday it widened its losses in the second quarter, as the closure of 29 locations caused revenues to drag.

For the three months ending July 30, the department store giant posted a net loss of $146 million, or $1.37 loss per share, compared to a $39 million loss, or $0.35 loss per share, a year ago.

Adjusted for certain one-time charges, including $48 million relating to store closures and restructuring, the company's losses were $1.13 per share.

During the quarter, the Hoffman Estates, Illinois-based company closed 29 stores in total, including 10 Kmart locations, three full-line Sears stores, 12 hardware and appliance stores, two Sears Auto Centers and two The Great Indoors locations.

Revenues dropped 1.2% to $10.3 billion, from $10.5 billion in the same period last year.

Analysts had expected a per share loss of 46-cents, on $10.13 billion in revenues.

"We are not satisfied with our results and are taking actions to turn around our performance in a challenging economic environment," said president and CEO, Lou D'Ambrosio.

"While we improved our revenue trend, including growing our online business by over 30%, we had lower gross margins. . . due to markdowns taken to clear seasonal inventory and promotional activity."

Indeed, gross margins fell to 25.8%, from 27% a year earlier.

Comparable store sales, or those of locations open at least one year, stumbled 0.7% on fewer Kmart and Sears full-line locations. Sears Canada posted a 5.8% drop in same store sales, partially offset by an $86 million sales benefit due to the favourable impact of foreign currency rates.

Overall domestic same store sales improved over the first quarter's 3.6% drop, the company said, but Sears Domestic still saw a 1.2% decrease due to lower consumer electronic sales, while Kmart saw flat sales growth.

Sears' online sales increased 32% over the quarter, and resulted in a 60 basis point benefit to total domestic comparables sales.

Sears said it expects to generate cash savings of approximately $50 million on the liquidation of inventory from the stores it closed during the period, and anticipates a $21 million gain from the sale of the two Great Indoors locations.

Sears, whose own brands include Kenmore, Lands' End, Joe Boxer and Covington, saw its stock drop 4.11% to trade at $57.67 per share before the bell.

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Thu, 18 Aug 2011 09:39:00 -0400 https://www.proactiveinvestors.com/companies/news/79237/sears-disappoints-as-q2-losses-grow-on-store-closures-17372.html
<![CDATA[News - Sears' Q1 results disappoint; turns to a loss and revenues decrease ]]> https://www.proactiveinvestors.com/companies/news/77667/sears-q1-results-disappoint-turns-to-a-loss-and-revenues-decrease-14749.html Sears (NASDAQ: SHLD) said Thursday that it swung to a loss in the first quarter, citing bad weather, continued financial strain on customers, and last year's government-sponsored rebate programs for appliances.

For the three months ending April 30, the Illinois-based department store chain reported a net loss of $170 million,  or $1.58 per share, compared to a net profit of $16 million, or 14 cents per share, in the year-ago period.

On an adjusted basis, the company posted a loss per share of $1.39, versus a 16 cent per-share-gain a year earlier.

Total revenue decreased 3% to $9.7 billion, primarily a result of a 3.6% decrease in domestic comparable store sales, as well as the impact of having fewer Kmart and Sears Full-line stores in operation. The company also saw a whopping 9.2% fall in same store sales at its Sears Canada locations, which was partially offset by favourable foreign currency effects, it said.

The drop in domestic revenue, which includes a 1.6% decline in Kmart same store sales, was driven by sluggish appliance, apparel and consumer electronic sales, which offset increases in home, sporting goods, jewelry and footwear categories.

Sears said that appliances benefited in the previous year due to a "cash for appliances" rebate program sponsored by the government, while apparel sales suffered from unusual bad weather. Meanwhile, Kmart experienced lower sales in the food and pharmacy categories.

"We also fell short on executing with excellence. We cannot control the weather or economy or government spending. But we can control how we execute and leverage the potent set of assets we have," said president and CEO Lou D'Ambrosio.

Domestic comparable store sales for the latest quarter included online sales from both Sears and Kmart, which resulted in a gain of roughly 50 basis points, the company said.

Sears also stated that it plans on taking actions to improve its operations, including building its position in the appliances category, and revitalizing its home services and apparel businesses, as well initiating effective expense management measures.

First quarter gross margin fell to 26.8% from 28.2% a year earlier, due to reduced margins in the home appliance category - a result of US Sears stores introducing instant free delivery and increased promotional markdowns at Sears Canada.

At quarter-end, the company had $1.0 billion in cash and total debt of $3.6 billion.

Despite the first quarter figures being within the company's prior guidance, analysts expected better earnings and shares of the company fell nearly 4% on Thursday morning as a result, to trade at $72.93 as of 10:15am EST.    

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Thu, 19 May 2011 10:19:00 -0400 https://www.proactiveinvestors.com/companies/news/77667/sears-q1-results-disappoint-turns-to-a-loss-and-revenues-decrease-14749.html