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Losses mount at Sears Holdings

  • Sears Holdings (SHLD) reports a 7.6% drop in comparable store sales in Canada during Q1.
  • In the U.S., comp sales at Sears were up 0.2% while Kmart saw a 2.2% fall.
  • Gross margin rates crumbled across brands as the company leaned on promotions heavily and a shift in mix hurt. Free delivery on home appliances also cut in.
  • Strategic alternatives continue to be looked at by the company for Sears Canada and the Sears Auto Center business.
  • CEO Eddie Lampert waxes on about the transition of Sears to a member-centric business model even as the losses mount.
  • SHLD -2.8%
Comments (9)
  • John/Jack
    , contributor
    Comments (100) | Send Message
     
    I believe the comp sales increase at Sears, though tiny, is a significant milestone. Haven't seen that in any quarter since I've followed the stock.
    22 May, 07:25 AM Reply Like
  • Micah
    , contributor
    Comments (478) | Send Message
     
    This is a crap quarter for earnings, again, but Eddie did mention that comps would have been higher had consumer electronics not been such a drag.
    22 May, 07:32 AM Reply Like
  • Interesting Times
    , contributor
    Comments (11482) | Send Message
     
    And the Queen would be King if she had...never mind !
    22 May, 07:36 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1687) | Send Message
     
    Micah, earnings would have been better too if they didn't have interest payments, pension liabilities, a crappy gross margin, etc, etc, etc.
    22 May, 09:44 AM Reply Like
  • Rwong8200
    , contributor
    Comments (114) | Send Message
     
    Member-centric? sorry Eddie, Sears is not Costco. Sorry to see a great franchise die of old age.
    22 May, 08:38 AM Reply Like
  • chummybeagle
    , contributor
    Comments (114) | Send Message
     
    Reminds me of an oldie but goodie:

     

    Build a man a fire and he will be warm for a night. Set a man on fire and he will be warm for the rest of his life.
    22 May, 09:24 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1687) | Send Message
     
    Or give a man a balance sheet full of assets, and he'll find endless ways to burn it.
    22 May, 09:34 AM Reply Like
  • MrVincent
    , contributor
    Comments (256) | Send Message
     
    Sears, Circuit City is waiting for you to join them.
    22 May, 10:22 AM Reply Like
  • life_student
    , contributor
    Comments (6) | Send Message
     
    He will do it
    22 May, 04:24 PM Reply Like
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