Sears reported its 20th straight quarterly decline on Thursday and acknowledged that the company has "fallen short" of expectations for a recovery.
The company said revenue fell 12.5% to $5 billion in the third quarter.
Same-store sales dropped 7.4%, including a 10% decrease at Sears stores and a 4.4% decrease at Kmart stores.
Sears' cash and equivalents fell 12% to $258 million in the period.
The company said it will continue to accelerate store closures to help stop the bleeding.
Sears is shutting down 64 Kmart stores this month, following the closure of nearly 80 Sears and Kmart stores in July.
"We understand the concerns related to our operating performance," Sears Chief Financial Officer Jason Hollar said in a pre-recorded conference call. "We have fallen short on our own time-table for achieving the profitability that we believe the company is capable of generating. With that said, the team remains fully committed to restoring profitability to our company and creating meaningful value."
Addressing widespread speculation about a potential Sears bankruptcy, Hollar reiterated that the company has a "rich asset base" to draw from in order to stay in operation.
"We believe that our liquidity needs will be satisfied through the foreseeable future using the levers available to us through our portfolio of assets," Hollar said.
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10 comments:
Old business model that failed to adapt to changing customer base. The only people shopping at Sears are old folks that cling to nostalgia. Say Fred, remember when the postman brought the catalog to the house? Yeah, sure miss those days, Bob.
Sears was once a great company.
My old boss Frank Holas president of Sarah Lee and Sea Pak always said" you can't save yourself into a profit".
Hey, the Sears/Roebuck catalog was iconic. I, for one, truly miss that large, wonderful catalog and the Christmas catalog was a child's delight to look through while making their list for Santa. If those days could and would come back, I think people would truly enjoy them!
When the new catalog came out the old one served a purpose in the outdoor potty. I'm 80 and I remember well.
Us old folks, maybe, if I could still lift the catalog
china and the likes killed sears
I can't recall the last time I heard a Sears commercial, seen an ad, or saw an email invite to shop online.
Hmmmmm... wonder why they are suffering so much?
Now i'll have to switch to toilet paper...
People don't shop the same way today. There is a specialty store for every type of item. Shoes, clothes, bras, cookware, stools, etc. One place selling generic type products is not appealing to people. China and Japan killed radio shack. Catalogs are thing of the past. Advertising is online now.
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