On Jun 20, 2014, we issued an updated research report on
Sears Holdings Corporation
Sears Holdings is finding it increasingly difficult to stabilize
as it continues to grapple with deteriorating top and bottom lines.
The beleaguered retailer reported a huge loss for the first quarter
of fiscal 2014 as it failed to attract customers despite providing
huge discounts on merchandise. The company's first quarter adjusted
loss widened to $2.24 per share against a loss of $1.36 in the
year-ago comparable quarter.
Revenues declined 6.8% to $7,879 million compared with $8,452
million in the year-ago quarter. The persistent sluggish
performance at its Sears Domestic and Kmart stores - owing to
Wal-Mart and dollar stores' aggressive pricing and expansion
strategies - are drags on the company's top-line results.
However, we commend Sears Holdings' efforts to improve its
financial performance and liquidity position through various
strategic measures. One such major initiative taken by the company
is transforming its business model, which we believe will help in
stabilizing its declining sales.
Sears Holding, which currently sells products through
store-based networks, is looking for opportunities to transform its
business to a member-centric model through its Shop Your Way
program. As part of this remodeling initiative, the company is
heavily investing in its Shop Your Way program while strategically
reducing its store count and divesting its underperforming
Moreover, the company is focused on cost containment, inventory
management and merchandise enhancement initiatives to inflate
margins. The company's strategy of capitalizing on opportunities
and returning to profitability through its simplified
organizational structure and new operating model are also
Sears Holdings currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks worth investing in the retail industry
Five Below, Inc.
), each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
V F CORP (VFC): Free Stock Analysis Report
SEARS HLDG CP (SHLD): Free Stock Analysis
FIVE BELOW INC (FIVE): Free Stock Analysis
CONNS INC (CONN): Free Stock Analysis Report
To read this article on Zacks.com click here.