Sears: $10 BILLION dollars LOST over the last 6 years
Sears just can’t catch a break. According to this Fortune report, Sears posted a 230 million dollar sales skid in Q1. The company has lost almost 10 BILLION over the last six years. It’s only a matter of time before the company announces bankruptcy.
The troubled retailer, which earlier this year recognized there are doubts about its viability, on Thursday once again reported enormous sales declines as it lost its hold on categories it used to dominate such as household appliances, and suggested more store closing were in the offing.
Sears Holdings, which operates the namesake department store chain and the Kmart discount stores, said comparable sales fell 12.4% at Sears, and 11.2% at Kmart. While Sears CEO Eddie Lampert recently invoked declining sales at many of the company’s rivals, Sears’ declines are far deeper than those of Macy’s (M, +1.64%) and J.C. Penney (JCP, +2.26%).
On the bright side, Sears managed to report its first quarterly profit in almost two years, helped by lower expenses that are part of its $1.25 billion cost-cutting plan. Still, stripping out the impact of certain one-time items, Sears reported an adjusted loss of $230 million in the quarter ended April 29. Sears has lost about $10 billion in the last six years.
Shares, which have been volatile among concerns about Sears’ cash levels, rose 18% in premarket trading. Still, they are down about 50% from a 52-week high.
Sears got a boost this week when it reported that it had been able to extend the maturity on some of its debt. Earlier this year, several credit agencies downgraded its debt and at least one invoked the possibility of bankruptcy giving the years-long sales declines. The company has been closing stores for years, shedding valuable assets and borrowing money from Lampert, a hedge fund manager, to stave off liquidity shortages.