Sears Holdings Corp. expects to post better adjusted financial results for the fourth quarter.
The embattled retailer provided an update in a regulatory filing Thursday with the Securities and Exchange Commission. The filing came in connection with a private exchange offer for certain bonds, a move the company said was being contemplated last month.
For the quarter ended Feb. 2, Sears said its adjusted results would range from earnings before interest, taxes, deprecation and amortization of up to $10 million to a loss of $10 million on the same basis. That compares with losses of $61 million from a year earlier.
Sears touted in the filing that the improvement is due to restructuring actions taken in 2017. Those actions include the closure of around 330 Kmart and Sears stores. There were also a series of loans from the hedge fund ESL Investments, which is run by Sears chairman and chief executive officer Edward S. Lampert.
Wednesday’s regulatory filing also said the company expects total revenues of $4.4 billion for the quarter, compared with $6.1 billion in the same quarter of 2016. Comparable-store sales for the quarter fell 15.6 percent — down 18.1 percent at Sears Domestic stores and off 12.2 percent at Kmart stores.
The declines came during a holiday sales season that was generally a solid one for retailers after a long slog through 2017.
Sears expects to post fourth-quarter net income of $140 million to $240 million, which includes a noncash tax benefit of $445 million to $495 million connected with tax reform, and a noncash impairment charge related to the Sears trade name of between $50 million and $100 million. The same 2016 quarter saw Sears post a net loss of $607 million.
Lampert has been trying to transform the operation to a “less asset-intensive business model, with a store footprint and digital capabilities meeting consumer needs and preferences,” the filing said.
The company is slated to hold its 2018 annual meeting of stockholders on May 9.