Sears sees income fall in the second quarter
Sears Holdings reported sales of $12.2 billion, down 4.7 percent from $12.8 billion last year. The company recorded net income of $176 million, down 40.1 percent from $294 million last year.
The lower results reflect lower operating results at Sears stores in the United States and Kmart stores, the company said in a statement. Sears Canada partially offset the poor performance, the company said.
"We are disappointed with our second quarter results,” said Aylwin Lewis, CEO of Sears Holdings. "In response, we are enhancing our marketing message to more clearly articulate the advantages of our products and service offerings.”
Sears’ domestic comparable-store sales fell 4.3 percent in the quarter, while comparable-store sales fell 3.8 percent at Kmart stores, leading to a decline in total domestic comparable-store sales of 4.1 percent.
Additionally, the company announced it has opened a new 782,000-square-foot direct delivery facility in Pendergrass, Ga. to serve the Alabama, Florida, Georgia, North Carolina, Tennessee and Kentucky markets.
Based in Hoffman Estates, Ill., Sears Holdings operates approximately 3,800 full-line and specialty retail stores in the United States and Canada.