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Sears’ Q2 Loss Widens

The retailer's second-quarter results included a gain on the sale of assets.

Land's End inside Sears.

The second-quarter loss at Sears Holdings Corp. was wider than a year ago, but the company said its membership program gained traction in the period.

For the three months ended Aug. 3, the net loss was $194 million, or $1.83 a diluted share, compared with a loss of $132 million, or $1.25, in the year ago quarter. The results included a gain on the sale of assets of $58, after tax and noncontrolling interest, in connection with certain U.S. and Canadian stores and leasehold interests. Revenues fell 6.3 percent to $8.87 billion from $9.47 billion. Same-store sales fell 2.1 percent at the Kmart nameplate, and fell 0.8 percent at Sears domestic stores. Sears Canada stores saw same-store sales fall 2.5 percent.

The company said its Shop Your Way membership program gained traction in the quarter, with members generating over 65 percent of revenues at Sears domestic stores and Kmart, versus over 55 percent a year ago.

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Eddie Lampert, chairman and chief executive officer, said, “We made meaningful progress this quarter in our transformation to a member-centric company…. At the same time, we recognize how important it is to improve the profitability of our company and I am disappointed that we did not deliver a better result.”