Sears Holdings Corp. on Thursday reported a first-quarter loss consistent with the company’s warning earlier this month that it would post a bigger-than-expected loss for the three-month period.
For the quarter ended April 30, the loss attributable to shareholders was $170 million, or $1.58 a diluted share, against income of $16 million, or 14 cents, last year. The company had said to expect a first-quarter loss of between $145 million and $195 million.
Revenues declined 3.4 percent to $9.7 billion from $10 billion. The decrease was primarily due to a 3.6 percent decline in domestic comparable-store sales and a 9.2 percent drop in comps at Sears Canada stores. By nameplate, comps at Sears domestic stores were down 5.2 percent, while at Kmart comps fell 1.6 percent. At Sears, sales were down in the appliance, apparel and consumer electronic categories and up in the home, sporting goods, jewelry and footwear sectors. At Kmart, the decrease was due to fewer sales in the food, consumables and pharmacy categories.
Lou D’Ambrosio, president and chief executive officer, said the company is taking actions to leverage its leadership position in its marquee brands, such as Kenmore, Craftsman, DieHard and Lands’ End. “Everything will begin and end with the customer experience,” he said.
For complete coverage, see Friday’s WWD.