Sears Holdings last quarter performed even worse than feared, dimming hopes for the company to complete what would now be a massive—and surprising—turnaround.
Sears posted a $211 million loss , $1.99 a share, after earning $93 million, 54 cents a share, a year earlier. Excluding charges tied to the company’s restructuring efforts, it lost $498 million, $4.70 a share. Analysts had predicted Sears would lose only $91 million, 86 cents a share.
Sales at established locations fell by 3.1%. The greatest declines came at Kmart stores, which dropped 4.8%. At the company’s namesake stores, sales decreased 1.6%. In all, revenue declined to $8.86 billion, from $9.57 billion a year earlier, primarily from the closing of many stores.
The chain, led by hedge fund manager Eddie Lampert, competes most with Wal-Mart and Target, as well as Costco and discount chains like Dollar General. It is struggling to attract customers, and has lead many investors to complete sum-of-the-parts valuations: Many believe Sears will either liquidate or that Lampert will buy the small public float that remains.
Shares of Sears fell by 5.3% in after-hours trading.
Reach Abram Brown at abrown@forbes.com
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