Net Income for Sears Holdings Falls 38 Percent in First Quarter

HOFFMAN ESTATES, Ill.-First-quarter net income for Sears Holdings dropped 38 percent to $16 million.

The decline occurred in spite of the fact that other key numbers for the company were relatively flat in the quarter. Revenues finished the quarter at $10 billion, less than 1 percent off the first quarter of last year; and selling and administrative expenses actually declined by 0.7 percent. W. Bruce Johnson, Sears Holdings' interim chief executive officer and president, noted that the company's gross margin dipped by 40 basis points to 28.2 percent. There was also a gain of 14 percent on the company's interest expense.

The gross margin drop "was mainly due to reduced margins in our home appliance category, driven primarily by increased promotional markdowns, as well as reduced margins in the home electronics category," the company said in a press release.

The revenue picture included same-store sales increases of 1.7 percent for Kmart and 1.2 percent for Sears domestic stores. Johnson said Kmart had a particularly upbeat quarter, improving its gross margin and nearly doubling its operating income.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.