Sears Holdings Narrows Loss in Second Quarter
Posted on August 19, 2010 by
Sears Holdings headquarters
HOFFMAN ESTATES, Ill.--Sears Holdings reported a second-quarter net loss of $39 million, as compared to the net loss of $94 million it posted in the second quarter of last year.
The parent company of Sears and Kmart was able to keep its expenses in check during the quarter, with selling, general and administrative expenses slipping by 0.9 percent and gross margin rising 50 basis points to 27 percent. Total revenues dipped 0.8 percent to $10.5 billion, which included a decline of 2.8 percent in same-store sales at Sears' domestic locations, and a 1.4 percent drop in comparable-store sales at Kmart.
W. Bruce Johnson, interim chief executive officer and president of Sears Holdings, credited the company for its "expense discipline" in the second quarter. Johnson said the company managed reductions in SG&A "even as we continued to invest in initiatives designed to improve our customers' experiences, such as our multichannel capabilities and the launch of our Shop Your Way Rewards program."