Sears Holdings Up 15% After Announcing Restructuring Plans

Shares of Sears Holdings SHLD are up 15% after the company reported earnings and announced a series of restructuring strategies. Total revenues decreased $518 million to $12.5 billion for the quarter ended January 28, 2012. Full year revenues decreased $1.1 billion to $41.6 billion. The declines in total revenue were primarily due to lower comparable store sales and the effect of having fewer Kmart and Sears Full-line stores in operation. The fourth quarter and full year 2011 revenues included a decrease of $20 million and an increase of $171 million, respectively, due to foreign currency exchange rates. For the quarter, domestic comparable store sales declined 3.4%, comprised of declines of 4.1% at Sears Domestic and 2.7% at Kmart. Sears Domestic's fourth quarter sales decline was driven by the consumer electronics and appliances categories, partially offset by increases in the apparel, including Lands' End in Sears' stores, home and footwear categories. Kmart's fourth quarter comparable store sales decline reflects decreases in the consumer electronics, which accounted for three quarters of the decline, pharmacy, jewelry and home categories, partially offset by an increase in the grocery and household category. The company announced today a definitive agreement for the sale of eleven Sears full line store locations to General Growth Properties for a purchase price of $270 million. The transaction is expected to close in the next 45 to 60 days, subject to customary closing conditions.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EarningsNewsIntraday UpdateMovers
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!