Sears net loss widens in the third quarter

REPPORT_ Sears Holdings Corporation announced that in line with the third quarter estimate provided on November 7, 2014, company’s net loss attributable to Sears Holdings' shareholders was 548 million dollars or 5.15 dollars loss per diluted share, compared to 534 million dollars or 5.03 dollars loss per diluted share for the prior year third quarter. Domestic Adjusted EBITDA was 296 million dollars compared to 310 million dollars in the prior year third quarter.

“We remain intently focused on delivering an unparalleled integrated retail experience for our customers through Shop Your Way and above all, returning Sears Holdings to profitability,” said Edward S. Lampert, Sears Holdings' Chairman and Chief Executive Officer, “During the quarter, we unveiled or expanded several integrated retail customer initiatives, which helped drive online and multi-channel sales.”

Online and multi-channel sales grew approximately 9 percent over the prior year third quarter and approximately 18 percent over the prior year first nine months as the company continues to transform to an integrated retail platform - with shopping at the store, online and on mobile; Sales to Shop Your Way members in Sears full-line and Kmart stores were 72 percent of eligible sales, consistent with the third quarter last year. Kmart comparable store sales increased 0.5 percent for the quarter, as compared to a 2.1 percent decline in the third quarter of last year. Apparel, outdoor living and toys were top performers.

Sears Domestic comparable store sales decreased 0.7 percent for the quarter, as compared to a 4 percent decline in the third quarter of last year, reflecting the impact of consumer electronics industry trends. Excluding the impact of consumer electronics, Sears Domestic comparable store sales would have increased 1.0 percent. Year-to-date, company closed, or announced for closure, approximately 235 underperforming stores, the majority of which are Kmart stores. The company has more than 1,830 Sears and Kmart stores.

Revenues decreased approximately 1.1 billion dollars to 7.2 billion dollars for the quarter ended November 1, 2014, as compared to revenues of 8.3 billion dollars for the quarter ended November 2, 2013. For the quarter, domestic comparable store sales declined 0.1 percent, comprised of an increase of 0.5 percent at Kmart and a decrease of 0.7 percent at Sears Domestic. Gross margin decreased 330 million dollars to 1.6 billion dollars in the third quarter of 2014, as compared to the prior year quarter. Kmart's gross margin rate for the third quarter increased 50 basis points primarily driven by an increase in the apparel category due to lower promotional activity. Sears Domestic's gross margin rate declined 190 basis points for the quarter.