There are 6 articles on this stock available only to PRO subscribers.
From other sites
at CNBC.com (Thu, 10:48AM)
at CNBC.com (Thu, 7:00AM)
at CNBC.com (Tue, 9:48AM)
at CNBC.com (Sun, 3:00PM)
at CNBC.com (Dec 12, 2014)
at CNBC.com (Dec 11, 2014)
at CNBC.com (Dec 10, 2014)
at CNBC.com (Dec 5, 2014)
at CNBC.com (Dec 5, 2014)
at CNBC.com (Dec 5, 2014)
Are Sears And Staples More Valuable As Domain Names Than Brick And Mortar Stores?
- Sears and Staples might be more valuable as domain names than as brick and mortar stores.
- Staples’ online revenue is nearly double Netflix’s TTM revenues.
- Eddie Lampert’s recent actions at Sears look like a blueprint for shifting from brick and mortar to eCommerce.
- Sears’ Shop Your Way and Staples Rewards seems to be designed to lure customers online and away from brick and mortar stores.
Sears Holdings Corporation: Is Any Price Overvalued?
- Continues to close hundreds of stores nationwide.
- Haven't posted a profit in nine straight quarters.
- Most financial ratios are negative.
Is There An Opportunity With Sears Holdings Warrants?
- Exploring leverage opportunities with stock warrants.
- SHLD - a look at the retail operations.
- SHLD - a look at the real estate operations.
- Sears Holdings reported comparable sales numbers that were essentially flat.
- The business appears to be stabilizing, but at levels far below even breakeven adjusted EBITDA.
- Q3 2014 adjusted EBITDA was negative $296 million, marginally better than Q3 2013's negative $310 million.
- Sears is likely to burn over $1.5 billion next year, before working capital changes and asset sales.
- 2015's funding gap will be partially filled by the reduction in inventory and asset sales. Then, the pattern will repeat itself again the following year.
Photos: Empty Shelves At Sears And Kmart As Vendors Get Squeezed
- Photos show empty shelves at Sears and Kmart.
- Stores have 10% less merchandise than last year, when shoppers were already complaining of empty shelves.
- Vendors are being squeezed by the cost to protect shipments from a Sears bankruptcy, priced at over 140 times the rate of comparable Walmart insurance.
- An ongoing effort by Sears' CEO to mitigate vendors' costs appears to be falling apart.
Be Careful Betting On The Action At Sears Holdings
- Department store retailer Sears Holdings has continued to struggle to find its way back to profitability in FY2014, reporting continued operating losses.
- Despite the unfavorable financial performance, the company's shares have been riding some positive momentum over the last month, thanks to management's apparent willingness to consider large real estate sales.
- With operating losses likely to continue, even with more asset sales, Sears Holdings seems to be a risky proposition at current levels and investors should probably avoid the story.
Update: Sears' Store Cuts Don't Sway Us From Skepticism
- We wrote about Sears a couple of days ago, in anticipation of the company's upcoming earnings.
- Sears has been unable to turn itself around, and is bleeding cash.
- Today's news of new store closings does not change our thesis.
Sears Closing More Stores Next Year, 8,000 Layoffs Since November
- Growing list of store liquidations now extends into 2015 fiscal year.
- Closures include 70 Kmart stores, 39 Sears stores, 35 Sears Auto Centers, two distribution centers, and three repair facilities.
- At Sears stores that remain open, employees report layoffs of HR managers, loss prevention managers, department managers, and auto center employees.
- By virtue of SHLD's recent rights offering, new warrants (with a SHLDW ticker) will soon be created.
- The warrants have several adjustment features, which can reduce the strike price and increase the number of shares per warrant.
- The terms in the prospectus is in heavy Legalese, and are a bit hard to read and understand.
- This is an attempt to present the adjustment terms more clearly. Each investor must still read the entire prospectus before investing.
- SHLD has been struggling on the retail front for years.
- SHLD is now looking to create a REIT with its owned property to raise cash.
- It wouldn't be the first retailer to find its properties were more valuable than its retail operations; Alexander's and Vornado found the same thing.
This REIT Band-Aid Will Only Make The Sears Brand Fade
- It’s funny, the four letter REIT word seems to be the “happy dance” for many companies that own real estate and struggling with liquidity.
- If Sears is already losing money at the store level, how is the company going to become profitable by adding another expense to the bottom line?
- The REIT idea is just another “can-kicking strategy” that will lead the company down the path of bankruptcy much faster.
- The best REITs today drive share value by managing risk effectively – that includes balance sheet management, portfolio management, and human capital management.
- The demise of Sears seems quite inevitable at this point.
- Creative and controversial maneuvers by Eddie Lampert are being used to address liquidity issues.
- The core business of Sears is shot, and the valuable assets in real estate are being sold frequently.
- I do not trust management, which has been so profound in destroying the value of this company, to now be able to realize value of significance for shareholders.
Sears Holdings: Examining A Possible REIT Spin-Off
- Shares of Sears soared over 30% on news that the company was exploring the formation of a REIT.
- Taxable C-corporation REIT spin-offs are a relatively new phenomenon, dating back to just 2013.
- The IRS has outlined specific requirements for the formation of a REIT that Sears must satisfy.
- Sears announced that domestic adjusted EBITDA in the third quarter 2014 would be similar to levels in 2013.
- The company also announced that it would be exploring a REIT transaction involving 200-300 properties to shore up liquidity.
- We think investors should be careful going anywhere near Sears' equity at the moment. Let's talk about why.
- Sears has amassed a mountain of debt; its debt to equity ratio was 8.406% in July 2014.
- Sears’ TTM revenue fell by $3.68 billion between July 2013 and July 2014.
- Sears CEO Eddie Lampert is trying to protect the chain’s real estate assets by transferring them to a REIT.
- Sears is closing stores so fast that observers are having a hard time keeping count.
- Sears is actually planning to close dozens of stores during the critical holiday shopping season.
Update: Sears Holdings Provides Q3 2014 Update And Explores REIT Transaction
- Sears Holdings announced that it expects -$275 million to -$325 million in adjusted EBITDA in Q3, as well as that it is exploring a REIT transaction for 200-300 stores.
- I expected that the operating performance would be along those lines. The decline seems stabilized, but at a level where it is still burning $1+ billion per year.
- Sears is potentially moving faster to unlock its remaining real estate value than I anticipated, although it still needs to do something more than just explore the transaction.
- I believe that Sears is even more overvalued now after the runup in its stock price given the continued poor operating performance.
- The REIT transaction may settle the question of real estate value.
- SHLD's closing price of $36.74 on 2014-10-30 implies subscription right values between $1.43 and $2.63 per SHLD share.
- I estimate the subscription right value to be around $1.88 per SHLD share using a required note yield of 12%.
- Valuation methodology is described below.
Sears Holdings: Not A Bargain Despite 45% Decline Versus October 2012
- Share price appears to be 45% lower than it was two years ago.
- However, after accounting for spinoffs and changes in net debt, the combined enterprise value of the units that made up Sears Holdings two years ago is actually slightly higher now.
- As well, Sears has divested approximately $1.3 billion in real estate over the past two years.
- Today's Sears Holdings would be worth $26 per share with the same enterprise value as two years ago and then adjusting for the sale of real estate assets.
- An argument can be made for further reduction to reflect the poorer operating performance now.
Yesterday, 12:37 PM
- Sears Canada (NASDAQ:SHLD) plans to invest in areas where it thinks it can turn a profit, while exiting other product categories, acting CEO Ron Boire tells Reuters.
- More details on the shift in strategy are expected to be announced at a shareholder meeting in April.
- Sears Holding owns only about 12% of Sears Canada after selling off pieces.
Thu, Dec. 18, 7:01 AM
- Apparel prices fell 1.1% in the U.S. during November, according to yesterday's CPI report.
- The drop followed a 0.2% slide in apparel prices for October.
- Retail analysts note that a higher mix of e-commerce sales and the lingering promotional haze threaten margin expansion in the sector, despite overall tighter inventory control.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, RL, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, KORS, UA, GIII, SQBG, HBI, SKX, FL, VRA, ICON, NKE, WWW, DECK, CROX, SHOO, BWS, PERY, DXLG, SHLD, BONT, GPS, GES, URBN.
Mon, Dec. 15, 1:10 PM
- A blog post from Sears Holdings (SHLD -2%) indicates the company plans to have about 1,700 Sears and Kmart stores in operation going into 2015.
- The company says it anticipates keeping the stores open, although utilizing opportunities to "reposition" them for other uses is likely.
- Sears has already partnered with Dick's Sporting Goods, Whole Foods, Forever 21, and Primark in space-sharing arrangements.
Fri, Dec. 12, 10:17 AM
- The S&P Retail ETF (XRT +0.5%) is out ahead of market averages again on enthusiasm over consumer spending forecasts.
- Today it's apparel/footwear sellers and department store chains with the broad set of gains.
- Gainers: Lululemon (NASDAQ:LULU) +2.7%, Ralph Lauren (NYSE:RL) +1.0%, Under Armour (NYSE:UA) +1.1%, Sequential Brands (NASDAQ:SQBG) +0.7%, Michael Kors (NYSE:KORS) +0.5%, Coach (NYSE:COH) +2.3%, Nike (NYSE:NKE) +0.7%, Deckers Outdoor (NYSE:DECK) +1.1%, Macy's (NYSE:M) +2.4%, Sears Holdings (NASDAQ:SHLD) +1.7%, J.C. Penney (NYSE:JCP) +1.5%, Nordstrom (NYSE:JWN) +0.8%.
Thu, Dec. 11, 9:30 AM
- Retail sales struck their biggest gain since March on broad strength.
- What's working: Strong growth was seen in auto parts (PBY, ORLY, AZO, AAP, MNRO) with the broad parts category showing year-over-year sale growth of over 8% in November. Sales were up 6.8% Y/Y for health and personal care stores (ULTA, SBH, CVS, WAG, RAD) during the month.
- What's not working: Department stores (DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN) went backwards with sales off 1.1% from a year ago. No surprise, but sales at gas stations (CASY, KR, PTRY) also fell off from a year ago.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK.
Thu, Dec. 4, 2:40 PM| 28 Comments
Thu, Dec. 4, 10:31 AM
- Shares of Destination Maternity (DEST -7.8%) slide after the company misses earnings estimates.
- A frank assessment from the company on a misfire with its assortment to millennial-aged moms-to-be strikes a bit of a chord across the apparel and department store sector.
- Many of the earnings hits and misses this quarter have been tied to on-trend or off-trend assortments. A millennial group which is hard to nail down is becoming a bigger part of that puzzle.
- Apparel stocks: KATE, ANN, LULU, RL, PVH, VNCE, CRI, UA, HBI, VFC, COLM, KORS, GIL, SQBG, JCP, KSS, DDS, M, JWN, RL, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, KORS, UA, GIII, SQBG, HBI, SKX, FL, VRA, ICON, NKE, WWW, DECK, CROX, SHOO, BWS, PERY, DXLG, SHLD, BONT, GPS, GES, URBN, TJX.
Thu, Dec. 4, 7:04 AM
- A leaner Sears Holdings (NASDAQ:SHLD) from a year ago reports comparable-store sales at the Sears chain fell 0.7% in FQ3, while the Kmart comp rose 0.5%.
- Sales in the company's online channel improved 9% over the period.
- Gross margin rate -110 bps to 22.2%.
- SG&A expense rate +60 bps to 27.9%.
- Merchandise inventory -27.5% to $6.464B.
- Cash balance -15% to $326M.
- Sears says it had $1.5B left to borrow under the terms of its credit facility as of December 3.
- SHLD -0.1% premarket.
Thu, Dec. 4, 6:06 AM
Wed, Dec. 3, 5:30 PM
Tue, Dec. 2, 1:05 PM
- A technical breakdown on the performance of retail e-commerce sites for Black Friday and Cyber Monday reveals some winners and losers.
- Sears (NASDAQ:SHLD), Costco (NASDAQ:COST), Office Depot (NASDAQ:ODP), REI, Saks and NewEgg drew high marks for using responsive web design to create a seamless mobile experience for users.
- Costco and Sears were also on a list of fastest sites - along with Barnes & Noble (NYSE:BKS), W.W. Grainger (NYSE:GWW), Williams-Sonoma (NYSE:WSM), and Hennes & Mauritz (OTCPK:HMRZF).
- The extended holiday was more uneven for Best Buy (NYSE:BBY), Staples (NASDAQ:SPLS), Cabela's (NYSE:CAB), and Forever 21 which had painful outages or slow performance times.
- J.C. Penney (NYSE:JCP) was reported to have had a temporary mobile glitch which caused a slowdown, but also ended up on a list of top website performers.
Mon, Nov. 24, 1:34 PM
- SA contributor Mitch Nolen is out with an updated list of stores that Sears Holdings (SHLD +2.3%) plans to close through the 2015 fiscal year as determined from local liquidation notices, sources, and notices required by the Worker Adjustment and Retraining Notification Act.
- The tally includes 70 Kmart stores, 39 Sears stores, 35 Sears Auto Centers, two distribution centers, and three repair facilities.
- Close to 8K layoffs can be attributed to the closures, says Nolen.
Mon, Nov. 24, 12:01 PM
- Some data mining by WalletHub gives a sneak peek at which retailers are above and below the sector average of 39.5% on Black Friday discounting off of typical pricing.
- Retailers with above-average discount activity: J.C. Penney (NYSE:JCP) 65.44%, Macy's (NYSE:M) 63.52%, Rite Aid (NYSE:RAD) 53.34%, Sears (NASDAQ:SHLD) 50.19%.
- Retailers with below-average discount activity: Costco (NASDAQ:COST) 21.14%, Big Lots (NYSE:BIG) 25.24%, Amazon (NASDAQ:AMZN) 26.10%, Best Buy (NYSE:BBY) 32.08%.
Thu, Nov. 20, 10:45 AM
- The usual suspects topped a list of the businesses with the most foot traffic in October, compiled by location analytics firm Placed.
- The top five chains were Wal-Mart (NYSE:WMT), McDonald's (NYSE:MCD), Subway, Starbucks (NASDAQ:SBUX), and Walgreens (NYSE:WAG).
- Significant movers over the last month include KMart (NASDAQ:SHLD) +9 spots, KFC (NYSE:YUM) +6 spots, Bed Bath & Beyond (NASDAQ:BBBY) -7 spots, and Costco (NASDAQ:COST) -6 spots.
Tue, Nov. 18, 11:46 AM| 2 Comments
Mon, Nov. 17, 9:58 AM| 2 Comments
SHLD vs. ETF Alternatives
Other News & PR