Sears Reports $127 Million Loss in Third Quarter
HOFFMAN ESTATES, Ill.-Sears Holdings reported a net loss of $127 million for the third quarter, down from the $146 million net loss it posted for the third quarter of last year.
The retail holding company said it was able to slim down the loss by trimming selling and administrative expenses by 2.4 percent, and through a 5 percent decline in cost of sales, buying and occupancy. This helped offset a 4.4 percent drop in revenues, which totaled $10.2 billion in the quarter.
Domestic same-store sales for the company as a whole slipped 2.3 percent in the third quarter. Kmart's same-store sales rose 0.5 percent, while comparable-store sales at Sears decreased by 4.6 percent.
Among other "encouraging signs" (as expressed by W. Bruce Johnson, interim chief executive officer and president of Sears Holdings) were a 40-basis-point rise in the company's gross margin rate to 27.2 percent, and an increase in its cash balance from $1.2 billion in last year's third quarter to $1.5 billion this year.