Sears reports a massive loss of $607 million…More stores to close?
More bad news for Sears as the retailer reports another weak quarter according to this USA today report.
The company continues to see negative growth in key indicators, making me believe that hundreds of stores will be closing soon.
Sears, which has been shuttering stores to stem the company’s financial bleeding, saw another steep loss in the fourth quarter, following anemic holiday sales and fewer locations where customers could shop.
The company lost $607 million, or $5.67 per diluted share, during the quarter that ended on Jan. 28. That compared with a loss of $580 million, or $5.44 per diluted share, a year earlier.
The company, which also owns Kmart, saw revenues slide to $6.1 billion during the fourth quarter, from $7.3 billion a year earlier. The dip was largely due to the reduced number of both Sears and Kmart full-line stores, which led to a revenue loss of $596 million. Sales at stores open at least a year also plummeted 10.3%, representing a loss of $555 million in revenue.
“While the challenging holiday selling season pressured margins and comparable store sales, we were able to successfully improve profitability through disciplined inventory and costs management,” Jason Hollar, Sears Holdings chief financial officer, said in a statement. “We will continue to take actions to drive profitability, generate liquidity and adjust our overall capital structure while continuing to meet all of our financial obligations.”
Though the reduced number of stores hurt revenue in the last fiscal year, the company has continued to shed real estate in order to boost its bottom line. In January, it announced that it would shutter 150 stores and sell its vaunted Craftsman tool brand.