logo
Share SHARE
FONT-SIZE Plus   Neg

Sears Holdings Reverses To Loss In Q4; To Spin Off Certain Stores - Quick Facts

Sears Holdings Corp. (SHLD: Quote) posted a large fourth-quarter GAAP net loss attributable to Holdings' shareholders of $2.40 billion compared with $374 million profit last year, with quarterly loss per share totaling $22.63, as against a profit of $3.43 a year ago.

On an adjusted basis, earnings per share plummeted to $0.54 from $3.67 in the comparable period prior year. On average, 3 analysts polled by Thomson Reuters expected earnings per share of $0.78 for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter decreased to $12.48 billion from $13.0 billion in the earlier year period. Analysts estimated revenues of $12.44 billion for the quarter. For the quarter, domestic comparable-store sales were down 3.4%, comprised of declines of 4.1% at Sears Domestic and 2.7% at Kmart.

The company attributed the declines in total revenue mainly to lower comparable store sales and the effect of having fewer Kmart and Sears Full-line stores in operation. The 2011 fourth quarter revenues included a decrease of $20 million, due to foreign currency exchange rates.

Separately, Sears Holdings reached a definitive agreement for the sale of eleven Sears full line store locations to General Growth Properties for a purchase price of $270 million, and the transaction may close in the next 45 to 60 days. Each of the Sears stores is part of an existing General Growth property.

In addition, the company plans to separate its Sears Hometown and Outlet Businesses and certain hardware stores through a proposed rights offering that is expected to raise nearly $400 million - $500 million. The rights would entitle holders to buy shares in the combined Sears Hometown and Outlet Stores businesses and certain hardware stores and would be transferred to holders of Sears Holdings stock.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Firearms maker Smith & Wesson Holding Corp. (SWHC), Tuesday reported a drop in profit for the third quarter, as revenues and margins declined reflecting lower sales of long guns. However, earnings for the quarter came in ahead of Wall Street estimates as did revenues. Moving ahead, the company boosted... Target Corp (TGT) on Tuesday said it plans $2 billion of cost savings over the next two years, mainly at its corporate headquarters, as the discount retailer strives to boost profit and become a leaner outfit. Reports said that about $500 million of the savings would occur in the current year, and... Bob Evans Farms Inc. (BOBE) on Tuesday reported a drop in a profit for the third quarter, despite growth in revenues, with both earnings and revenues falling short of expectations. Moving head, the restaurant chain lowered its fiscal year 2015 outlook. Shares of Bob Evans Farms plunged over 18 percent...
comments powered by Disqus
RELATED NEWS
Trade SHLD now with 
Follow RTT