- Sears reported its first quarterly profit in nearly two years, helped by the retailer's $1.25 billion cost-cutting plan, amid doubts about its ability to continue as a going concern.
- Sears sold its Craftsman tools brand to Stanley Black & Decker (SWK) in March.
- Once the largest U.S. retailer, Sears has been struggling to turn around its business for years amid intensifying competition from Wal-Mart Stores Inc (WMT) and Amazon.com Inc (AMZN).
Sears Holdings misses by $1.43, beats on revs; Sears Domestic comps -12.4% :
- Reports Q1 (Apr) loss of $2.15 per share, excluding non-recurring items, $1.43 worse than the two analyst estimate of ($0.72); revenues fell 20.3% year/year to $4.3 bln vs the $4.05 bln two analyst estimate.
- At Kmart, comparable store sales decreased 11.2% during the first quarter of 2017, primarily driven by declines in the grocery & household, pharmacy, apparel and home categories.
- Sears Domestic comparable store sales decreased 12.4% during the quarter, primarily driven by decreases in the home appliances, apparel and lawn & garden categories.
- Adjusted EBITDA was $(222) million in the first quarter of 2017, as compared to $(181) million in the prior year first quarter.
- "In April 2017, we provided an update to our restructuring program, including increasing our annualized cost savings target to $1.25 billion. On May 15, 2017, the Company entered into an agreement to annuitize $515 million of pension liability with MLIC, under which MLIC will pay future pension benefit payments to approximately 51,000 retirees. In addition, the Company recently reached an agreement to extend the maturity of $400 million of our $500 million 2016 Secured Loan Facility from July 2017 to January 2018, with the option to further extend the loan until July 2018."
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