Struggling department store chain Sears Holdings Corp SHLD disappointed investors with another round of store closures in conjunction with its first-quarter results, which sent shares lower by 10 percent.
What Happened
Sears said Thursday it lost $3.93 per share in the first quarter on revenue of $2.891 billion. Wall Street analysts were expecting the company to lose $1.51 per share on revenue of $2.86 billion. Net loss during the quarter fell from positive $245 million a year ago to a net loss of $424 million while total comparable sales fell 11.9 percent for the company as a whole, comprised of negative 9.5 percent at Kmart and negative 13.4 percent at Sears.
Sears did highlight positive comparable store sales at Kmart and Sears within several categories, including apparel, footwear and jewelry.
Sears also said its total cash balance as of May 5 was $466 million and total long-term debt was $3.5 billion.
Why It's Important
Sears CEO Eddie Lampert said in the press release the company remains committed to exploring opportunities, including third-party partnerships, focusing on smaller store formats, among others. In the meantime, the company said it has identified 100 non-profitable stores, 72 of which will be closed in the "near future."
What's Next
Sears remains committed towards achieving a positive EBITDA for the full year and unlocking the "full potential of our assets for our shareholders," Lampert said.
Sears' stock was down about 9.5 percent to $2.90 at time of publication. The stock has fallen nearly 80 percent over the past two years.
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Photo courtesy of Sears.
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