UPDATE: Sears Posts Wider Q2 Loss, Shares Drop

Sears Holdings

posted a wider loss for the second quarter. The Hoffman Estates, Illinois-based company posted a quarterly loss of $573 million, or $5.39 per share, versus a year-ago loss of $194 million, or $1.83 per share. Excluding certain items, Sears posted an adjusted loss of $2.87 per share. Its revenue dropped 9.7% to $8.01 billion. Analysts were expecting a loss of $2.63 per share on revenue of $8.13 billion. Sears posted an operating loss of $514 million, versus $51 million in the year-ago quarter. Sears' gross margin narrowed to 21.7% from 24.6%, while consolidated selling and administrative expenses slipped $173 million in the quarter. The company's same-store sales dropped 0.8% at domestic stores. Sears domestic same-store sales gained 0.1%, while same-store sales at Kmart stores dropped 1.7%. Online and multi-channel sales climbed 18% y/y. "We have continued to show progress in our transformation, as demonstrated by our year-over-year increase in online and multi-channel sales, and with our member sales now representing 73% of eligible sales," said Edward S. Lampert, Sears Holdings' Chairman and Chief Executive Officer. Sears shares dropped 1.22% to $35.51 in pre-market trading.