Sears is running out of assets to sell
The CEO of Sears Holdings says the company is making progress in its strategic turnaround despite plans to close 28 more Kmart stores.
For the second quarter ended July 29, Sears's loss narrowed to $251 million, or $2.34 per share. Revenue fell 23 percent to $4.37 billion in the period. Same store sales dropped 11.5% overall. At Kmart, the measure dropped 9.4%, while at Sears stores, that figure was down 13.2%.
Sears has been trying to cut costs by closing stores, including 180 this year and already had plans to cut another 150 stores. Sears now has 1,250 stores overall in the United States -- 650 of them are Sears banners and 610 are Kmart locations. A year ago, Sears at 709 Sears stores and 883 Kmart stores.
In addition to cost cutting and selling off its legacy brands, Sears is also betting on its customer loyalty program, Shop Your Way, to help lead a turnaround.
"We are making progress on the strategic priorities we outlined earlier this year and remain focused on returning our Company to profitability," said Edward S. Lampert, chairman and CEO of Sears Holdings. "The comprehensive restructuring of our operations is delivering cost efficiencies and helping drive improvements to our operating performance. While the third quarter has historically been our most difficult quarter over the past several years, we are working towards making meaningful improvement in our performance this year as a result of the restructuring actions we have put in place, and our continued focus on the expansion of our Shop Your Way ecosystem."
Last month, Sears began selling its appliances on Amazon.com, including Kenmore smart appliances that can be synced with Amazon's voice assistant, Alexa.
This year Sears sold its iconic Craftsman brand, worth up to $900 million, to Stanley Black & Decker Inc. Sears is also attempting to sell its Home Services and Auto Centers businseses, as well as the Kenmore and DieHard brands.
"During the quarter, we continued to focus on actions to provide the company with additional financial flexibility to generate liquidity and demonstrate our ability to manage our business while meeting all of our financial obligations," said CFO Rob Riecker.