Sears Holdings' losses expand as total, same-store sales slump

Company says Q3 results consistent with prior financial guidance

HOFFMAN ESTATES, Ill. — Sears Holdings had sales of $8.3 billion in third quarter 2013, down $585 million compared with third quarter 2012, the parent company of the Kmart and Sears chains said Thursday.

Store closings accounted for about $200 million of the decline, while lower domestic same-store sales accounted for $170 million, and the spinoff in third quarter 2012 of Sears Hometown and Outlet Stores accounted for another $110 million. Domestic same-store sales declined by 3.1%, including a 2.1% at Kmart and a 4% decline at Sears U.S. stores, reflecting decreases in categories like pharmacy, grocery, household, electronics and toys, while the apparel, seasonal and outdoor categories saw increases. The quarter saw a $534 million loss, compared with a $498 million loss in third quarter 2012. Overall, the company said, results were consistent with prior guidance.

"We are proactively transforming our business to a member-centric integrated retailer leveraging Shop Your Way to benefit from the changing retail landscape," Sears Holdings chairman and CEO Edward Lampert said. "We are transitioning from a business that has historically focused on running a store network into a business that provides and delivers value by serving its members in the manner most convenient for them, whether in store, in home or through digital devices."

 

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