As sales slide, Sears mulls options for its big brands
NEW YORK - Sears Holding's (SHLD) fiscal first-quarter loss widened as sales dropped at its Kmart and namesake stores.
The retailer also announced that it is looking at options for its Kenmore, Craftsman, DieHard and Sears Home Services businesses, including possible partnerships or deals that could expand distribution of its brands and service offerings.
The chain said it believes it can achieve significant growth in the Kenmore, Craftsman and DieHard brands by further expanding their presence outside of Sears and Kmart.
For the period ended April 30, Sears Holdings lost $471 million, or $4.41 per share. A year earlier, the company based in Hoffman Estates, Illinois, lost $303 million, or $2.85 per share.
Removing certain items, the chain lost $1.86 per share. Revenue, meanwhile, declined to $5.39 billion from $5.88 billion.
Sales at Kmart stores in the U.S. that have been open for at least a year fell 5 percent. At Sears' locations, the figure dropped 7.1 percent. This metric is a key gauge of a retailer's health because it excludes results from locations recently opened or closed.
Chairman and CEO Edward Lampert said in a written statement on Thursday that clothing sales at Sears and Kmart stores continue to be hurt by heavy promotions from competitors.
Sears also announced that Chief Financial Officer Robert Schriesheim will be leaving the company to focus on other business interests and pursue other career opportunities. Schriesheim has agreed to stay with the company until a replacement is found. He will also continue as an adviser to Sears through Jan. 31, 2017.