Sears Loss Grows in Q3
November 21, 2013,
HOFFMAN ESTATES, Ill.-Declines in sales and a jump in promotional activity made the ink in Sears Holdings' bottom line redder in its fiscal third quarter, ending on Nov. 2.
The company posted a net loss of $534 million in the quarter, compared to a net loss of $498 million in last year's third quarter. Net sales were down 6.6 percent to $8.3 billion, with corporate same-store sales off 3.1 percent. Comparable-store sales at Sears' domestic stores fell 4 percent, while same-store sales at Kmart declined 2.1 percent.
Within product categories, a Sears Holdings statement said home was one of the few areas at Sears stores in which sales increased. The chain reported sales drops in consumer electronics, lawn and garden, tools, home appliances, apparel and at Sears Auto Centers. At Kmart, most of the decreases occurred in grocery, household, drug, consumer electronics and toys.
Edward Lampert, Sears Holdings' chairman and CEO, said the company is continuing its efforts to transform its business model from running a store network to an integrated store/in-home/online shopping platform, centering on Shop Your Way. "Throughout this transition, we have continued with traditional promotional programs and marketing expenditures while investing in our member-centric model, which has impacted our margin and expenses," Lampert said. "While transformations of this scale are challenging, we believe we are making progress as we are seeing substantive continued increases in our (Shop Your Way) member engagement metrics."