Sears posts $146 million loss
Hoffman Estates, Ill.-based Sears Holdings Corp. posted a third-quarter loss of $146 million, compared to a profit of $4 million in the same quarter last year. Same-store sales declined 10.6 percent at Sears department stores in the United States and were down 7 percent at Kmart.
The company’s revenues dropped more than 8 percent to $10.66 billion.
The company’s results included a charge of $101 million related to costs associated with the closure of 14 stores. Additionally, the company is closing eight underperforming stores and considering more closings.
“We believe we have positioned ourselves well for a difficult holiday shopping season,” said W. Bruce Johnson, Sears Holdings' interim chief executive officer and president.
“We have reduced our inventory levels, cut expenses and announced the closing of select underperforming stores as part of our ongoing review.”
The company said its comparable-store sales declines continue to be driven by categories directly affected by housing market conditions and a slowdown in consumers' discretionary spending (including home and household goods and apparel at both Sears Domestic and Kmart and lawn and garden at Sears Domestic).
The company also said Tuesday that Scott Freidheim, 43, formerly chief administrative officer at Lehman Brothers Holdings Inc., will be its new executive vp-operating and support businesses.