Sears Holdings: A Remake On-The-Fly
Stephen Percoco, CFA • 41 Comments
Stephen Percoco, CFA • 41 Comments
Sears: A Turnaround Is Possible, But At A Lower Value
Andriy Blokhin • 22 Comments
Andriy Blokhin • 22 Comments
Wed, Feb. 24, 5:30 PM
- AAON, ACIW, AG, ALKS, AMCX, AMRN, AMWD, ANSS, APA, APLP, AROC, BBY, BUD, CCOI, CHS, CLDX, CM, CNSL, CORE, CPB, CPK, CRI, CVC, DPZ, EGRX, EME, EMES, ENOC, FCH, FCN, FIG, GLOG, GOGO, GTLS, GVA, HBM, HEES, HMHC, HTWR, INCR, IONS, IRDM, IRM, ITC, KERX, KOP, KSS, LKQ, MITL, NEWM, NPO, [[NTi]], NXST, PCRX, PDCO, PF, PGTI, PRIM, PWR, RDUS, RGEN, RRD, RWLK, SAFM, SDRL, SEAS, SERV, SFM, SFUN, SHLD, SPAR, STWD, TD, TFX, TREE, TWI, UNT, UTHR, VAC, VC, VWR, W, WIN, WNR, WNRL, WPC, XCRA, ZBRA, ZEUS
Tue, Feb. 23, 9:42 AM
- Home Depot (HD +2.7%) and Lowe's (LOW +0.3%) are both higher in early trading after warm weather across the U.S. in Q4 appears to have extended fall product buying from consumers past the normal time period.
- Home Depot's 9% gain in Q4 comparable-store sales blasted past the consensus estimate for a 5% rise. That mark bodes well for Lowe's which reports tomorrow.
- A bigger trend is also in play. The home improvement chains are benefiting from a general willingness by consumers to spend on house projects and accessories over apparel. The department store sector (JCP, KSS, JWN, M, SHLD) in particular is being hard hit by the pronounced shift in consumer preferences as comparable-store sales growth continues to retreat despite some store weaning.
- Previously: Home Depot beats by $0.07, beats on revenue (Feb. 23 2016)
- Previously: Home Depot +2.6% post record Q4 results (Feb. 23 2016)
Fri, Feb. 12, 10:17 AM
Fri, Feb. 12, 8:51 AM
- Retail sales came in stronger than expected in January and were revised higher for the key month of December.
- A few standpoint categories for January included food services (+6% Y/Y), building material/garden equipment stores (+5%), and nonstore retailers (+9% Y/Y).
- A notable laggard in the retail sales print was the department stores category (KSS, JWN, M, JCP, SHLD). Sales were down 0.8% M/M and 3.8% Y/Y during January.
- Full Retail Sales report (.pdf)
- Related ETFs: XLY, XRT, VCR, RETL, RTH, IYK, FXD, FDIS, RCD, PMR, UGE, SZK, BITE
Thu, Feb. 11, 10:34 AM
- Evercore ISI warns that Sears Holdings (SHLD -0.2%) faces a large liquidity event in 2017 even if it manages to survive 2016.
- "Sears margins were worse than we thought as a tough retail climate accelerated margin decline," reads a note issued earlier this week by the firm.
- While the expanse of Wall Street analyst coverage on Sears now consists of one Hold rating (S&P Equity Research) and a Sell rating (Evercore), SA contributor Dylan Street Capital still has extensive coverage on the retail stock.
Tue, Feb. 9, 7:33 AM
- Sears Holdings (NASDAQ:SHLD) announces that it expects to report Q4 revenue of $7.3B vs. $7.43B consensus.
- The company's comparable store sales fell off 7.1% during the quarter (Kmart -7.2%, Sears -6.9%).
- Sears plans to accelerate the pace of store closings and could move past the 50-store mark that was previously announced.
- Sears says it may tap borrowing lines to fund its "transformation" in 2016.
- SHLD -3.41% premarket to $16.16.
Fri, Jan. 22, 3:21 PM
- Sears Holdings (SHLD +5.6%) is solidly higher amid talk the company could be the next department store operator to hear from activist investors.
- Fairholme Capital has added more shares in the early part of 2016 to become the second largest shareholder with a 25% stake.
- Eddie Lampert is still calling the shots at Sears through his 29% position held personally and 21% stake through his hedge fund.
- Shares of Sears hit a 52-week low of $16.27 last week.
- Fairholme's SEC filings
Thu, Jan. 14, 1:24 PM| Thu, Jan. 14, 1:24 PM | 23 Comments
Dec. 31, 2015, 4:59 AM
- Fairholme Capital's Bruce Berkowitz, the largest outside shareholder at Sears (NASDAQ:SHLD), has been taking a more activist role at the company.
- According to regulatory filings, Fairholme funds have bought about 1.45M shares in the retailer this month, taking their total shares to 27.8M, or the equivalent of a 26% stake.
- Representatives will also "be in contact" with Sears regarding views of the company's long-term prospects, which "may include proposing or considering" actions.
Dec. 10, 2015, 11:12 AM
- Warren Buffett's 8.02% stake in Seritage Growth Properties (SRG +13.4%) is Warren Buffett's stake - not Berkshire Hathaway's.
- To refresh, Sears Holdings (SHLD +5.1%) sold about 250 of its Sears and Kmart stores this year to newly-formed Seritage Growth Properties, which in turn leased most of the properties back to SHLD.
- Previously: Buffett discloses stake in Sears' REIT (Dec. 10)
Dec. 3, 2015, 6:30 AM
- Sears Holdings (NASDAQ:SHLD) reports domestic comparable-store sales fell 8.6% in Q3.
- Sears domestic comp dropped 9.6% and the Kmart comps declined 7.5%.
- Segment sales: Kmart: $2.247B (-17%); Sears Domestic: $3.503B (-9.9%).
- Gross margin rate decreased 30 bps to 21.9%.
- Adjusted gross margin rate increased 110 bps to 21.7%.
- SG&A expense rate grew 40 bps to 28.3%.
- Adjusted SG&A expense rate expanded 260 bps to 27.4%.
- Merchandise inventory -4% to $6.208B.
- Store count -562 Y/Y to 1,687.
Dec. 3, 2015, 6:07 AM
- Sears Holdings (NASDAQ:SHLD): Q3 EPS of -$2.86 misses by $0.02.
- Revenue of $5.75B (-20.2% Y/Y) beats by $240M.
Dec. 2, 2015, 5:30 PM
Nov. 30, 2015, 10:31 AM
- Department stores stocks are down across the board after reports of weak Black Friday traffic and pricing work turn sentiment sour.
- Sears Canada (SRSC -1.5%), Sears Holdings (SHLD -3.3%), Dillard's (DDS -3.2%), J.C. Penney (JCP -2.4%), Macy's (M -1.2%), Nordstrom (JWN -1.2%), and Kohl's (KSS -0.9%) are all lower.
- The SPDR S&P Retail ETF (NYSEARCA:XRT) is down 1.27%, although the damage could be worse if the underlying index didn't hold four internet retailers (Netflix, Amazon, Shutterfly, TripAdvisor) as top ten positions.
Nov. 17, 2015, 10:34 AM| Nov. 17, 2015, 10:34 AM | 21 Comments
Nov. 11, 2015, 11:32 AM
- A painful guidance cut from Macy's is creating a wave of selling across mall-related retailers.
- Decliners in the fragile sector include Urban Outfitters (URBN -6.1%), Ascena Retail Group (ASNA -7.1%), Dillard's (DDS -6.5%), Sears Holdings (SHLD -4.3%), TJX Companies (TJX -3.2%), Guess (GES -3.5%), Abercrombie & Fitch (ANF -4.6%), Francesca's Holdings (FRAN -4.4%), Express (EXPR -3.4%), (DSW -3.8%), American Eagles Outfitters (AEO -2.5%), Aeropostale (ARO -3.9%), Zumiez (ZUMZ -4%), Buckle (BKE -3%), and bebe stores (BEBE -9.5%).
- Previously: Macy's lower after U.S. sales slump and nixing REIT (Nov. 11)
- Previously: Department store sector on watch after Macy's warns (Nov. 11)
- Previously: Should Macy's suppliers be worried? (Nov. 11)
Sears Holdings Corp. is a holding company, which is an integrated retailer with physical and intangible assets. The company, through its subsidiaries, operates a national network of stores with full-line and specialty retail stores in the United States. It also operates number of websites under... More
Industry: Department Stores
Country: United States