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
United Parcel Service, Inc. has started to test the use of drones to make commercial deliveries of packages to remote or difficult-to-access locations. On Thursday, the package delivery giant and drone-maker CyPhy Works staged a mock delivery of urgently needed medicine from Beverly, Massachusetts to Children's Island, which is about three miles off the Atlantic coast. Luxury electric car maker Tesla Motors Inc. (TSLA), Thursday filed a lawsuit against state officials over its right to sell vehicles directly to consumers in Michigan. The lawsuit has been filed against Governor Rick Snyder, Secretary of State Ruth Johnson and Attorney General Bill Schuette as defendants. Tesla... e.l.f. Beauty (ELF), a maker of cosmetic products, priced its initial public offering above its target range and raised about $141 million. The Oakland-based company opened sharply up on Thursday's trading on the New York Stock Exchange. The company said it sold about 8.3 million shares at $17 in...
comments powered by Disqus
Follow RTT