Sears Holdings posts Q4 results, sees drop in comp sales at Kmart

HOFFMAN ESTATES, Ill. — Sears Holdings announced on Thursday that it narrowed its fourth-quarter loss and, during 2013, made process on its transformation.

"Our focus on serving our members through an integrated platform that is most convenient for them — whether in store, at home or on the go — is resulting in improved member engagement, which is a key component of our member strategy. For the full year 2013, sales derived from Shop Your Way members grew to 69% of total Sears full-line and Kmart sales, up from 59% last year. Our online and multi-channel businesses grew 10% over the prior full year,” said Edward Lampert, Sears Holdings’ chairman and CEO.

During the quarter, revenues decreased $1.7 billion to $10.6 billion compared with revenues of $12.3 billion in the year-ago period. The revenue decrease was primarily due to lower domestic same-store sales and having fewer Kmart and Sears full-line stores in operation.

For the quarter, same-store sales dropped 6.4%, comprised of decreases of 5.1% at Kmart and 7.8% at Sears domestic stores. The company noted that the decline at Kmart reflects declines in a majority of categories, most notably electronics, grocery and household, toys and pharmacy.

The company did not break out pharmacy sales.

Net loss attributable to Holdings’ shareholders during the quarter was $358 million compared with a loss of $489 million in the year-ago period.

Looking ahead, Lampert expressed optimism as the company continues to invest in its transformation.

“We are proactively learning more and more each day about how our members want to shop and what resonates with them. We’re utilizing this feedback as we continue our transition and invest in two primary areas: Our member based platform, Shop Your Way, and integrated retail,” Lampert told analysts. “These two key elements represent a different way of doing business at Sears Holdings, and are the foundations of our other programs and initiatives. Within these two key areas, we’re making substantial investments in engaging members with personalized, relevant content, offering more capabilities to our members, continually enhancing member engagement and building out our platform technology.”

Login or Register to post a comment.