Sears posts quarterly loss, revenues down

Sears Holdings reported net loss attributable to Holdings' shareholders of 395 million dollars or 3.70 dollars loss per diluted share for the second quarter of 2016 compared to net income attributable to Holdings' shareholders of 208 million dollars or 1.84 dollars per diluted share for the prior year second quarter. Adjusted EBITDA of 191 million dollars, improved from 226 million dollars in the prior year second quarter. Kmart and Sears domestic comparable store sales declined 3.3 percent and 7 percent.

Commenting on the trading, Edward S. Lampert, Holdings' Chairman and CEO, said, "We continue to face a challenging competitive environment and while we continue to focus on our overall profitability, including managing expenses, we reported a net loss for the second quarter. We are encouraged by the year-over-year improvement in our Adjusted EBITDA and feel we are making progress in our transformation as we remain focused on our best stores.”

Second quarter revenues down

Revenues decreased approximately 548 million dollars to 5.7 billion dollars for the quarter ended July 30, 2016, compared to revenues of 6.2 billion dollars for the quarter ended August 1, 2015.

The decrease in revenue was primarily driven by a 5.2 percent decline in comparable store sales during the quarter, which accounted for 240 million dollars of the revenue decline, and by having fewer Kmart and Sears full-line stores in operation, which accounted for 199 million dollars of the decline. In addition, the company also experienced a decline in revenues from Sears Hometown and Outlet Stores of approximately 75 million dollars during the second quarter of 2016.

Kmart experienced comparable store sales increases in several categories this quarter, including toys, jewelry, mattresses and apparel, which were more than offset by declines in the pharmacy, grocery and household and consumer electronics categories. Sears domestic comparable store sales decreased 7 percent, primarily driven by decreases in home appliances, apparel, consumer electronics, footwear, lawn & garden and tools.

Picture:Sears