Sears Holdings Projects Net Loss for First Quarter
HOFFMAN ESTATES, Ill.-Sears Holdings said it expects to report a first-quarter net loss of between $145 million and $195 million, when it issues its report on the period on or about May 19.
In addition, according to a preliminary statement from the holding company, Sears' U.S. stores and Kmart experienced same-store sales declines in the quarter, which ended on April 30, of 5.2 percent and 1.6 percent. The company also said Sears Canada expects to report a comparable-store sales drop of 9.2 percent for the quarter. Home was one area that generated same-store sales growth in the quarter, along with sporting goods, jewelry and footwear. But these gains were offset by weakness in sales of appliances, apparel and consumer electronics.
The projected net loss for the quarter compares with net income of $16 million for the first quarter of 2010. According to the statement, Sears expects to report operating income of between $25 million and $105 million for the quarter, but has predicted that it will report charges and expenses not related to operating income of between $170 million and $300 million.