Sears loss widens in Q1, CFO Robert Schriesheim quits

Sears Holdings Corporation said that reported net loss attributable to its shareholders was 471 million dollars or 4.41 dollars per diluted share in the first quarter of 2016 compared to a net loss of 303 million dollars or 2.85 dollars per diluted share for the prior year first quarter. Kmart and Sears domestic comparable store sales declined 5 percent and 7.1 percent. Meanwhile, Sears announced departure of its Chief Financial Officer, Robert Schriesheim.

“While our operating performance still remains well below our goals, I am pleased to report that our first quarter Adjusted EBITDA, excluding Seritage Growth Properties and joint venture rent, improved by 14 million dollars compared to the first quarter of 2015, largely driven by reductions in overall expenses. Our Sears Domestic and Kmart apparel businesses continue to be negatively impacted by a heavily promotional competitive environment.”

Q1 revenues decline by 488 million dollars

Revenues decreased approximately 488 million dollars to 5.4 billion dollars for the quarter compared to revenues of 5.9 billion dollars for the quarter ended May 2, 2015. The decrease in revenue was primarily driven by a 6.1 percent decline in comparable store sales during the quarter, which accounted for 268 million dollars of the revenue decline, and by having fewer Kmart and Sears full-line stores in operation, which accounted for 149 million dollars of the decline.

During the quarter, gross margin decreased 341 million due to the above noted decline in sales, as well as a decline in our gross margin rate. Kmart's gross margin rate declined 310 basis points compared to the prior year first quarter, while Sears Domestic's gross margin rate declined 470 basis points.

picture:searsholdings.com