Sears Holdings Corporation
) reported second-quarter fiscal 2013 adjusted loss per share of
$1.46 per share, substantially widening from the year-ago
quarter's loss per share of $1.06. Including special items, the
company's reported loss reached $1.83 per share compared with a
loss per share of $1.25 in the prior-year period.
Revenues declined 6.3% to $8,871 million compared with $9,467
million in the year-ago quarter, primarily due to separation of
Sears Hometown and Outlet business, reduction in the number of
Kmart and Sears' full-line stores in operation during the quarter
and lower comparable store sales.
Segment-wise, sales at Sears Domestic fell 5.5% to $4,783
million, while Kmart sales declined 6.1% to $3,168 million.
Moreover, sales at Sears Canada registered a decline of 10.8% to
The company witnessed a 1.5% decline in domestic comparable
store sales, comprising a 2.1% fall at Kmart stores and 0.8% fall
at Sears Domestic. Moreover, Sears Canada reported comparable
store sales decline of 2.5% during the quarter.
The comparable store sales decline at Kmart stores was due to
weak performances in most categories with grocery &
household, pharmacy and drugstore being the most prominent. Comps
at Sears Domestic mostly suffered due to weak performance of the
home appliances category, which was partially offset by
improvement in the lawn & garden category, as well as
increases in the apparel and home categories.
Adjusted gross profit declined 7.5% to $2,193 million compared
with $2,371 million reported in the second quarter of fiscal
2012. Consequently, gross profit margin contracted 32 basis
points to 24.72%. The company's adjusted selling and
administrative expenses marginally declined to $2,248 million
from $2,254 million.
Adjusted loss before interest, tax and depreciation in
second-quarter fiscal 2013 was $55 million, substantially below
the adjusted EBITDA of $116 million earned in the year-ago
comparable quarter. Adjusted operating loss came in at $235
million compared with a loss of $71 million in the year-ago
Balance Sheet and Cash Flo
Sears Holdings ended the quarter with cash and cash
equivalents (including restricted cash) of $681 million and
long-term debt and capitalized lease obligations of $1,911
million, compared with a cash balance of $738 million and
long-term debt and capitalized lease obligations of $1,970
million at the end of the year-ago quarter. The company's
shareholder equity was $2,824 million as of Aug 3, 2013.
Other Stocks to Consider
Sears Holdings currently carries a Zacks Rank #3 (Hold). Other
stocks worth considering in the retail-wholesale space are
Best Buy Co., Inc.
). All these stocks have a Zacks Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
CONNS INC (CONN): Free Stock Analysis Report
GAMESTOP CORP (GME): Free Stock Analysis
SEARS HLDG CP (SHLD): Free Stock Analysis
To read this article on Zacks.com click here.