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Sears Holdings Corporation (SHLD)

  • Oct. 2, 2014, 6:58 AM
    • Sears Holdings (NASDAQ:SHLD) says it expects to rake in $380M by early November from the sale of the rights to 40M shares in Sears Canada.
    • Clients of Fairholme Capital Management and Eddie Lampert are reported to be buyers.
    • The retailer needs liquidity to help it get through the holiday season.
  • Sep. 25, 2014, 10:34 AM
    • Sears Canada (NASDAQ:SHLD) CEO Douglas Campbell steps down from his position after one year on the job.
    • After a string of unprofitable quarters, Sears Canada has been looking for a buyer, although interest has been reported to be minimal and a piecemeal sale is likely.
  • Sep. 22, 2014, 10:29 AM
    • An auction to sell off a majority stake in Sears Canada has gone off like a dud, according to the New York Post.
    • A lack of serious interest in the Sears Holdings (SHLD -2.1%) property is a major reason the retailer was forced to borrow $400M from Chairman Eddie Lampert under debated terms, according to the buzz in the retail sector.
  • Sep. 18, 2014, 12:20 PM
    • The bull argument of Sears Holdings (SHLD -2.7%) having access to its real estate took a major blow with the $400M loan backed by Eddie Lampert, and secured with 25 locations, says Credit Suisse's Gary Balter, reiterating his Underperform rating and $20 price target.
    • "All of a sudden, as a vendor, one has to ask if cash flow is that tight that ESL needs to lend the money," says Balter. "And why is it taking first dibs on so-called valuable real estate if that was what the vendors had counted on if things further deteriorate?"
    • Balter isn't sure Sears' asset value is greater than the stock price, but he is sure this is not the case if shareholders can't get at those assets. If the assets are worth as much as the bulls say, the best move is to liquidate now as operations are taking more than $10 per share in value away every year.
    • Previously: Sears Holdings lower after Lampert cash infusion
    | 1 Comment
  • Sep. 16, 2014, 3:19 PM
    • Sears Holdings (SHLD -9.1%) grabbed hold of $400M in cash last night when it secured a short-term loan from Eddie Lampert, but the stock has lost roughly $320M in market cap today as some investors were left with an uneasy feeling over the real estate pledged to back the Lampert loan.
    • Though the cash was needed to buy inventory for the holiday shopping season, skeptics are focused on the additional risk of seeing Sears assets dumped at below-market prices.
    • Shares of SHLD carved out a new 52-week low of $30.16 earlier.
  • Sep. 16, 2014, 10:04 AM
    • Shares of Sears Holdings (SHLD -6.3%) fall after the company announces it struck a deal for a short-term loan with Eddie Lampert.
    • Sarcasm is running sky-high over the deal, with a particular focus on the 25 properties that's backing the loan.
  • Sep. 15, 2014, 10:08 PM
    • Sears Holdings (NASDAQ:SHLD) has secured a $400M short-term loan from chairman Eddie Lampert, according to a new SEC filing.
    • The company says it expects to use the funds for general corporate purposes.
    • Sears ended the first half of the year with $829M cash on hand.
    • SEC Form 8-K
  • Sep. 12, 2014, 12:41 PM
    • Fitch Ratings reports that the spread for credit default swaps on Sears Holdings (SHLD -1.1%) are at their widest margin in close to three years.
    • Over the last six months, 5-year CDS on Sears have widened by 68% to factor in the highest probability of a default by the company since 2012.
    • The ratings agency says the cash burn at Sears and concerns on funding have soured sentiment.
    | 1 Comment
  • Sep. 10, 2014, 1:49 PM
    • Fitch Ratings downgrades Sears Holdings (SHLD +2.5%) on a lack of visibility on how a turnaround of the company will be pulled off.
    • Though the ratings agency warns of top-line losses of 9%-10% this year and another 2 percentage point slip of gross margin rate to 22%, it's the cash burn issue that is the headliner of the downgrade.
    • Fitch says Sears needs to generate EBITDA of $1B annually until 2016 to service interest expenses, capex, and pension obligations against a forecast for a loss of $1B in EBITDA.
    • The IDR rating on Sears Holdings is taken to CC by Fitch.
  • Aug. 21, 2014, 6:56 PM
    • Sears' (NASDAQ:SHLD) operations burned through another $747M as it lost another $573M in a dismal Q2, prompting it to say in its earnings call that it is weighing additional steps to shore up its balance sheet.
    • SHLD may look to refinance some debt, including its revolving credit facility, which comes due in April 2016, and it has $1B in senior secured notes that come due in Oct. 2018; it also could issue debt against its real estate, similar to what J.C. Penney did last year when it secured a $2.25B loan with mortgages on its property.
    • SHLD has raised $665M YTD, in part by spinning off Lands' End to shareholders; it plans to raise $1B this year and may sell its 51% stake in Sears Canada and its Sears Auto Center business.
    • Fitch analyst Monica Aggarwal expects Sears to need $2B in cash in 2014 to fund operations and cover pension, interest and other obligations, but she is not optimistic: "We don't see them having the levers to turn this business around."
    • Meanwhile, sales have now fallen for 30 straight quarters, and Credit Suisse is calling Sears "one of the worst service stores in America."
  • Aug. 21, 2014, 1:11 PM
    | 1 Comment
  • Aug. 21, 2014, 6:57 AM
    • Sears Holdings (NASDAQ:SHLD) reports comparable-store sales growth of 0.1% in Q2. If the electronics category is backed out, the comp would have been 1.6%.
    • Online and multi-channel sales +18% during the period.
    • Gross margin -390 bps to 21.7%.
    • SG&A expense ratio +60 bps to 26.4%.
    • SHLD -1.2% premarket
  • Aug. 21, 2014, 6:02 AM
    • Sears Holdings (NASDAQ:SHLD): Q2 EPS of -$5.39 may not be comparable to consensus of -$2.63.
    • Revenue of $8B (-9.8% Y/Y) misses by $130M.
    • Press Release
    | Comment!
  • Aug. 20, 2014, 5:30 PM
  • Aug. 20, 2014, 11:28 AM
    • ICSC CEO Michael Kercheval says the back-to-school season is off to a strong season (video).
    • E-commerce hasn't taken control of the back-to-school spend due to social factors and tradition, according to an ICSC survey.
    • Brick-and-mortar stores still have 90% BTS market share. 73% of consumers say they "webroom" (research online, buy in stores).
    • Related stocks: SHLD, JCP, SPLS, ODP, WMT, COST.
    | 1 Comment
  • Aug. 13, 2014, 10:26 AM
    • Department store stocks are lower after Macy's misses estimates with its Q2 report and warns on consumer spending.
    • Decliners: Nordstrom (NYSE:JWN) -2.2%, Sears Holdings (NASDAQ:SHLD) -1.8%, Kohl's (NYSE:KSS) -2.7%, J.C. Penney (NYSE:JCP) -2.1%, Bon-Ton Stores (NASDAQ:BONT) -3.5%, Dillard's (NYSE:DDS) -2.2%.
    • The downward comp sales revision from Macy's and the flat reading on U.S. retail sales growth appears to be impacting big-box retailers Target (TGT -1%) and Wal-Mart (WMT -0.9%) as well.
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Company Description
Sears Holdings Corpalong with its subsidiaries is an integrated retailer with full-line and specialty retail stores in the United States, operating through Kmart and Sears.
Sector: Services
Country: United States