Sears to Shut More Kmart Stores

Sears Holdings, the department store retailer that’s seen its stock plunge 39% over the past year before Thursday, is shutting 28 more Kmart locations by the end of the year as part of its restructuring program. Already in fiscal 2017, Sears has closed 180 stores and another 150 sites are slated to be shut by the end of the third quarter. The closures, which had been previously announced, curbed sales in its fiscal second quarter, the company said in a statement Thursday. “The retail environment remained challenging, with continued softness in store traffic and elevated price competition,” Sears said.

Total revenue fell to $4.4 billion in the three months ending July 29, compared with $5.7 billion a year earlier. Store closures contributed to approximately $770 million of the decline, Sears said. A single analyst polled by Capital IQ was expecting $4.2 billion. The second quarter adjusted loss was $1.16 per share, narrower than the loss of $2.03 per share in the comparable period a year ago. The analyst expected a loss of $2.48 per share. Comparable store sales declined 11.5%.

Leave a Comment