Sears To Close 72 More Stores; Slips To Loss In Q1

(RTTNews) - Sears Holdings Corp. (SHLD) said Thursday that it plans to close 72 non-profitable stores, as the retailer continues to struggle with falling sales. The department store chain also reported a net loss for the first quarter.

Sears said it has identified about 100 non-profitable stores. Of this, 72 stores will begin store closing sales "in the near future." The company will provide a list of the 72 stores later today.

"We continue to evaluate our network of stores, which are a critical component in our transformation, and will make further adjustments as needed and as warranted," Sears said.

In recent years, Sears has been closing stores, divesting brands and spinning off units while it struggles with declining sales.

For the first quarter, net loss attributable to Sears' shareholders was $424 million or $3.93 per share, compared to net income of $245 million or $2.29 per share in the year-ago period.

The prior-year quarter's results included a gain of $492 million recognized in conjunction with the sale of the Craftsman brand.

Total revenues for the quarter fell 31 percent to $2.89 billion from $4.20 billion in the prior-year quarter, with store closures contributing to nearly two thirds of the decline.

Total comparable store sales for the quarter declined 11.9 percent, comprised of a 9.5 percent decline at Kmart and a 13.4 percent decline at Sears.

However, Sears noted that while total comparable store sales declined, it experienced positive comparable store sales at both Kmart and Sears in several categories, including apparel, footwear and jewelry.

In mid-May, Sears said that a special committee of its board of directors has initiated a formal process to explore the sale of its Kenmore brand and related assets, the Sears Home Improvement Products business of the Sears Home Services division, and the Parts Direct business of the Sears Home Services division.

Sears has also said it received a letter from ESL Investments, expressing interest in participating as a purchaser of all or a portion of the sale Assets. ESL Investments is the hedge fund of Sears Chief Executive Officer Edward Lampert.