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Sears Reports Deeper Loss, Lower Sales

Hoffman Estates, Ill. – Sears
Holdings reported deeper losses and lower sales year on year in its fiscal
third quarter, ended Oct 30.

Net losses in the quarter were
$218 million, higher than the prior year’s $127 million. Total revenues for the
quarter were down $512 million to $9.7 billion from the prior year’s $10.2

The decline in total revenue for
the quarter was primarily a result of a 4.8 percent decrease in domestic comp-store
sales and the effect of having fewer Kmart and Sears full-line stores in

Sears Domestic sales were $5.142
billion in the quarter compared with the prior year’s $5.507 billion. The
operating loss was $271 million for the quarter, compared with an operating
loss of $123 million in the prior year.

For Kmart sales were $3.381
billion, compared with $3.476 billion in the prior year. The operating loss was
$56 million in the quarter, compared with an operating loss of $72 million last

The domestic comp-store sales
decrease included declines of 0.7 percent at Kmart and 8.2 percent at Sears

Kmart’s quarterly decrease in comp-store
sales was partially offset by increases in consumer electronics, among other

Sears Domestic’s sales decline was
primarily driven by declines in home appliances and consumer electronics, among
other categories, which had greater decreases in October.

The decline in sales of home
appliances primarily resulted from overall softness in the appliance market, a
lower average selling price realized during the quarter and the effects of
delays in transition to new Kenmore products during the quarter.