HOFFMAN ESTATES, Ill.—The bottom line for Sears Holdings turned from black to red in the second quarter.
The company, parent to both Sears and Kmart stores, reported a net loss attributable to shareholders of $94 million in the quarter, compared to net income of $65 million for the second quarter of last year. The shortfall occurred primarily because of a 10.3 percent drop in the company’s total revenues, which included an 8.6 percent fall in same-store sales for the combined Sears and Kmart stores. This offset a decline in total expenses of 8.3 percent.
Noting the company’s efforts to slim down costs, W. Bruce Johnson, interim president and chief executive officer of Sears Holdings, said the overall retail environment is still difficult. Sears stores in particular struggled with a comp-store decline of 12.5 percent, pushed downward by the tough housing market and its impact on sales of home appliances.