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HOFFMAN ESTATES, Ill. — Sears Holdings Corp. reported a wider third quarter loss on Thursday and sought to assure suppliers and investors that it has enough money to meet its financial obligations.
Sears Holdings Corp. reported a wider third quarter loss on Thursday and sought to assure suppliers and investors that it has enough money to meet its financial obligations.
The embattled company, which operates Sears and Kmart stores, noted that its balance sheet has improved following recent store closings and inventory reductions. Loans from Eddie Lampert, Sears’ chairman and chief executive officer, also have helped shore up the company’s short-term financial standing.
For the three months through October, the company lost $548 million, or $5.15 a share, compared to a $534 million loss a year earlier. Revenue was down 13% to $7.2 billion. Same-store sales at Kmart were up 0.5% in the quarter; sales at Sears stores open 12 months or more slid 0.7% in the third quarter. Online sales rose 9% from a year ago.
As it seeks to stem its losses, the company is emphasizing online sales and its Shop Your Way rewards program. Sears said Shop Your Way accounted for 72% of eligible sales in the third quarter, the same as a year earlier.
The company noted that it has raised $2.2 billion this year as it tries to solidify its finances. It spun off its Lands End business and is selling most of its 51% stake in Sears Canada. In September, the company received a $400 million loan from the hedge fund run by Lampert.
The company remarked that it plans to close about 235 underperforming stores this year. Five years ago, it had more than 3,500 stores, but that number has shrunk to 1,830.
"Our stores are often in the wrong place and are often too large for our needs," Lampert told investors today during a conference call to discuss Sears’ third quarter financial performance.
