The improvement is due in part to the closure of unprofitable stores in 2017, and net profits are helped by a benefit from tax reform.
Even with potential annual cash interest savings of $100M, Fitch still expects the annual cash burn rate to hit $1.2B in 2018.
The chairman said financial maneuvers, if successful, should reassure vendors of the company’s viability.
The company is also hoping to raise another $200M to enhance its liquidity.
Liquidation sales are slated to begin Jan. 12.
Sears plans to build on the success of its new concept stores, but time and money are its two big hurdles.
Sears guided the loss to between $525 million and $595 million on revenues of $3.7 billion.
The ceo has long been floating Sears operations and the latest infusion looks poised to get it through the holiday season.
Sanuk owner Deckers is accusing the retailers of ripping off one of its best-selling designs.