For the third quarter of its fiscal year, Sears Holdings has posted another loss, marking four straight years of losses and eight straight years of sales declines. The company reported that revenue declined 13 percent when compared to the same quarter a year ago. The company, based in Hoffman Estates, Illinois, is now struggling to convince investors of its viability.
Sears lost $548 million, or $5.15 per share, in the quarter compared with a loss of $534 million, or $5.03 per share, last year. The company reported revenue of $7.21 billion for the quarter. During the third quarter, the company’s Shop Your Way loyalty program accounted for 72 percent of eligible sales, the same as the third quarter of last year. The company claims to have raised $2.2 billion for operations so far this year.
Billionaire hedge fund manager Edward Lampert, who is Sears Holdings’ CEO and chairman, has been having a lot of difficulty trying to get the company turned around. Lampert helped bring Kmart out of bankruptcy and combined Sears and Kmart in 2005. The company has been suffering losses since the merger of the two companies. The chain had 3,523 stores five years ago, but has reduced that number to about 1,830 Sears and Kmart stores today. Some have criticized the stores as being outdated and shabby.
Over the past few years, Sears has closed numerous stores, slashed its inventory, sold off assets and spun off exclusive brands. The company spun off its Lands’ End business earlier this year and is planning on selling 200 to 300 of its buildings to boost its liquidity. In the near future, Sears is selling most of its 51 percent stake in its Canadian unit for around $380 million. The company believes that the cost savings measures recently undertaken will help the company weather this downturn in business until the company can turn around its fortunes.
