Sears Holdings (SHLD) reported earnings on Thur 30 Nov 2017 (b/o)

• Nov, 28: #6,  vol. 1.4 M

** charts before earnings **

** charts after earnings **

Sears Holdings beats by $1.82, reports revs in-line; total comparable store sales -15.3% y/y 

• Reports Q3 (Oct) loss of $2.64 per share, $1.82 better than the single analyst estimate of ($4.46); revenues fell 27.2% year/year to $3.66 bln vs the $3.68 bln single analyst estimate.
  • Total comparable store sales declined 15.3%. Kmart comparable store sales decreased 13.0%, while Sears comparable store sales declined 17.0%.
  • Adjusted EBITDA improved $100 million to $(275) million in the third quarter of 2017, from $(375) million in the prior year third quarter. This marks the second consecutive quarter of at least $100 million improvement in Adjusted EBITDA as the restructuring actions taken in the first three quarters of 2017 have resulted in meaningful year-over-year improvement in the Company's performance.
• Looking ahead to Q4 they intend to
  • Continue to develop new ways to leverage the Shop Your Way platform in order to invest marketing dollars at the member level to optimize returns and improve comparable store sales trends and associated profitability.
  • Diversify revenue streams through third party partnerships in several of our businesses including Sears Home Services, Innovel, Kenmore and DieHard.
  • Further build on the momentum around our dedicated concept stores similar to the recently opened Sears Appliances and Mattress stores in Camp Hill, Pennsylvania and Honolulu, Hawaii.
  • Maintain extreme cost discipline focus in light of continued headwinds across the retail sector.
• Edward S. Lampert, Chairman and Chief Executive Officer of Holdings, said, "In the third quarter, we continued to narrow our losses and delivered another quarter of Adjusted EBITDA improvement of at least $100 million. With the challenging retail landscape continuing to pressure sales, the improvement in Adjusted EBITDA is reflective of the success of the strategic priorities we outlined earlier this year to streamline our operations, reduce inventory and minimize operating expenses, as well as our commitment to our goal of restoring positive Adjusted EBITDA in 2018. Our Shop Your Way membership program and Integrated Retail Strategy remain a key focus for us in order to meet the needs of our members and provide our members with the best experience possible throughout the holiday shopping season."