Total Company net sales for the second quarter of fiscal 2017 increased 3% over the same quarter last year to a record $891 million. Comparable Retail segment net sales, which include our comparable direct-to-consumer channel, increased 1%. Comparable Retail segment net sales increased 5% at Urban Outfitters, was flat at Free People, and decreased 3% at the Anthropologie Group. Wholesale segment net sales increased 4%. click Read More below for additional detail
Sears Holdings Corporation (“Holdings,” “we,” “us,” “our,” or the “Company”)(NASDAQ: SHLD) today announced financial results for its third quarter ended October 29, 2016.
In summary, we reported a net loss attributable to Holdings’ shareholders of $748 million ($6.99 loss per diluted share) for the third quarter of 2016 compared to a net loss attributable to Holdings’ shareholders of $454 million ($4.26 loss per diluted share) for the prior year third quarter. Adjusted for significant items noted in our Adjusted Earnings Per Share tables, we would have reported a net loss attributable to Holdings’ shareholders of $333 million ($3.11 loss per diluted share) for the third quarter of 2016 compared to a net loss attributable to Holdings’ shareholders of $305 million ($2.86 loss per diluted share) in the prior year third quarter. Adjusted EBITDA was $(375) million in the third quarter of 2016, as compared to $(332) million in the prior year third quarter.
Edward S. Lampert, Holdings’ Chairman and Chief Executive Officer, said, “We remain fully committed to restoring profitability to our Company and are taking actions such as reducing unprofitable stores, reducing space in stores we continue to operate (including through the Seritage lease arrangement), reducing investments in underperforming categories and improving gross margin performance and managing expenses relative to sales in key categories. While many observers have acknowledged the significant asset base of our Company, we understand the concerns related to our operating performance and are committed to transforming our Company through our Shop Your Way membership program and our Integrated Retail investments. At the same time, we will continue to explore options to recognize the inherent asset value in a manner that complements our transformation.”
• A partnership with Citi Retail Services, Inc. to bring together the Sears MasterCard and Shop Your Way® offer. Starting November 1st, more than five million current Sears MasterCard holders whose cards are linked to the Shop Your Way® program earn more Shop Your Way® points at many of their favorite places and, in early 2017, the Sears MasterCard will evolve into a newly branded Shop Your Way® card;
• A strategic relationship with Uber Technologies, Inc. that allows its drivers and riders to earn Shop Your Way® points on trips made with Uber, leveraging the scale of Shop Your Way®, its tens of millions of members, and the footprint of Sears Auto Centers to provide unique benefits for drivers and riders; and
• Improvements in our Home Services business and expansion of its capabilities including our home warranty offerings.
Jason M. Hollar, Holdings’ Chief Financial Officer, said, “We will continue to take actions to generate liquidity, adjust our overall capital structure, and manage our business while meeting all of our financial obligations. Actions may include additional expense reductions, financing transactions and asset monetization including exploring alternatives for our Kenmore®, Craftsman® and DieHard® brands, our Sears Home Services business and our real estate portfolio.”
Revenues decreased approximately $721 million to $5.0 billion for the quarter ended October 29, 2016, compared to revenues of $5.8 billion for the quarter ended October 31, 2015. The year-over-year decline in revenues was primarily driven by having fewer Kmart and Sears Full-line stores in operation, which accounted for $323 million of the decline, as well as a 7.4% decline in comparable store sales during the quarter, which accounted for $304 million of the revenue decline.
At Kmart, comparable store sales decreased 4.4%. While we experienced an overall comparable store sales decline in our Kmart segment driven by declines in the grocery & household, consumer electronics and pharmacy categories, we are encouraged by the comparable store sales increases experienced in several categories this quarter, including apparel, jewelry and outdoor living. Sears Domestic comparable store sales decreased 10.0% during the third quarter of 2016, primarily driven by decreases in the home appliances, apparel and consumer electronics categories.
During the third quarter, gross margin decreased $300 million compared to the prior year third quarter due to the above noted decline in sales, as well as a decline in our gross margin rate in both the Kmart and Sears Domestic segments. The decline in margin rate in both segments was primarily driven by a decline in gross margin performance in the apparel business, as well as an overall increase in markdowns.
more at: http://searsholdings.com/docs/investor/eap/q3-2016-shc-earnings-release.pdf