Sears reports weak comps, issues FQ4 warning; shares -13.1% AH

|About: Sears Holdings Corporation (SHLD)|By:, SA News Editor

Sears (SHLD) reports its FQ4 (ends Feb. 1) same-store sales were down 7.4% Y/Y as of Jan. 6. Sears Domestic comps were down 9.2%, and Kmart 5.7%. By comparison, Sears saw only a 3.1% same-store drop in FQ3 (4% for Sears Domestic, 2.1% for Kmart). (PR)

With those numbers on the books, Sears now expects to report adjusted FQ4 EPS of -$2.01 to -$2.98, well below a -$0.20 consensus. Consolidated adjusted EBITDA is expected to be in a range of -$65M to $65M.

The retailer notes it has "continued with traditional promotional programs and marketing expenditures while investing in [its] member-centric model," and says these actions have impacted its margins and expenses.

Sears had $1B in cash as of Jan. 4, not counting C$300M in pending proceeds from a Sears Canada real estate sale, and $2.3B available via credit facilities. FQ4 results are due on Feb. 27.