twice connect
careers

Sears Reports $94M Q2 Loss

8/24/2009 02:00:00 AM Eastern

Slumping sales and higher costs from store closings and pension obligations led to a second-quarter loss of $94 million for Sears Holdings, compared with a year-ago profit of $65 million

“The overall retail market remains difficult and its impact is reflected in our results,” interim CEO and president W. Bruce Johnson said in a statement.

Net sales fell more than 10 percent to $10.6 billion for the three months, ended Aug. 1, and comp-store sales declined 8.6 percent in the United States.

At Sears' flagship stores, net sales declined 10 percent to $5.7 billion and comp-store sales fell 12.5 percent amid weak demand for major appliances and other home-related categories impacted by the depressed housing market.

At Kmart, net sales slipped 6.2 percent to $3.8 billion and comps declined nearly 4 percent, partially offset by an increase in consumer electronics sales.

Earnings were also dragged down by $103 million in expenses. These included a $61 million charge for closing 28 stores during the quarter (mostly Kmart's), plus associated severance pay, and $42 million in pension plan expenses stemming from last year's severe stock market declines.

Limiting the loss was a $212 million reduction in selling and administrative expenses and a $300 million reduction in inventory levels year-over year, to $8.6 billion.

PHOTOS
ProSource Meeting Filled With Optimism

San Antonio — Optimism reigned at ProSource’s

Ingram Draws 500 To Spring Vendor Expo

Scottsdale, Ariz. — Ingram Micro Consumer

CEA Holds ’14 Digital Patriots Dinner

Washington — CEA held its annual Digital Patriots’

8 Technology Accessories For a Greener Earth

An Earth Day review of Earth-friendly products, by

BrandSource Shows Diverse Product Selection

BrandSource’s Summit show at the Marriott World

Scenes From Toy Fair

By Lisa Johnston

ADL Honors Morales, Bilas, Paull, Weedfald At Annual Dinner

New York — The Anti-Defamation League’s National