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) 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
Consumers in Nigeria are calling for a boycott of Coca-Cola products sold in the African nation after a high court judge ruled that the products could be "poisonous". Justice Adedayo Oyebanji of the Lagos High Court ruled that high levels of benzoic acid and sunset additives in Coca-Cola's soft drinks could pose a health risk to consumers when mixed with ascorbic acid, commonly known as Vitamin C. Charles Murphy, a partner at New York hedge fund Paulson & Co., fell to his death after jumping out of a hotel window in Manhattan on Monday. Murphy was found dead on the fourth-floor terrace of the Sofitel New York Hotel after he jumped from a window on the 24th floor. Internet media company BuzzFeed is preparing to go public in 2018, media site Axios reported Wednesday, citing industry sources. New York-based BuzzFeed was founded in 2006 by Jonah Peretti and John Johnson III as a viral lab, focusing exclusively on tracking viral content.
comments powered by Disqus
Follow RTT