Sears Hometown And Outlet Q3 Earnings Down

(RTTNews) - Sears Hometown and Outlet Stores, Inc. (SHOS), a retailer of home appliances, hardware, and lawn and garden equipment, Friday reported a drop in earnings for the third quarter, notwithstanding the rise in sales, mainly due to higher cost of sales and occupancy.

Earnings declined to $7.69 million, or $0.33 per share, from $8.76 million, or $0.38 per share, a year earlier. For the third quarter, the cost of sales and occupancy was $425.59 million compared with $418.49 million a year earlier.

For the three months to November, adjusted EBITDA decreased 16 percent to $13.77 million from $16.36 million a year ago.

Net sales of the company rose to to $561.07 million from $556.90 million a year earlier. Comparable store sales were down 2 percent year-over-year.

Bruce Johnson, CEO and President, said, "The fourth quarter of 2013 will be the last quarter where we will have a significant negative comparable store sales impact due to our exit from consumer electronics in most stores in our Hometown segment."

Thursday, the stock closed at $29.16 on the Nasdaq.