Sears Holdings Corp. narrowed its first-quarter loss, but sales and comparable-store sales are still declining.
For the three months ended May 2, the net loss was $303 million, or $2.85 a diluted share, compared with the year ago net loss of $402 million, or $3.79. Net sales fell 25.4 percent to $5.88 billion from $7.88 billion. Comparable-store sales fell 10.9 percent. By nameplate, comps at Sears domestic stores dropped 14.5 percent and at Kmart decreased 7 percent.
The company said it expects its Seritage REIT rights offering to begin on June 12. The REIT, which involves the sale and leaseback of 235 Sears and Kmart stores, is expected to result in $2.6 billion in proceeds to Sears Holdings. Added to its previously announced joint venture deals, the company said it will have over $3 billion cash on hand.
Edward S. Lampert, chairman and chief executive officer, said that with the completion of the joint ventures and the formation of Seritage, the company “will become more productive with our physical store space.”
Robert Schriesheim, chief financial officer, said the company “has consistently demonstrated its ability to both meet all of our short-term liquidity needs and fund the long-term transformation of the company.”
The company has an agreement with its three asset-based lenders to amend and extend its $3.28 billion revolving credit facility to 2020, the cfo said.