Ahead of annual meeting, Sears predicts Q1 income growth

HOFFMAN ESTATES, Ill. — Ahead of its annual shareholders' meeting, Sears Holdings has provided first-quarter guidance calling for net income between $155 million and $195 million (between $1.46 and $1.84 per diluted share from continuing operations) versus a net loss from continuing operations of $165 million ($1.53 loss per diluted share from continuing operations), for the first quarter in 2011.  The above range includes approximately $235 million, after tax and minority interest, of gains from the sale of certain U.S. and Canadian stores. These transactions generated $440 million of cash proceeds.

For the first quarter, Sears Holdings reported a total same-store sales decline of 1.3%. Comps were down 1% and 1.6% at its domestic and Kmart units, respectively.

The sales decline at Sears' domestic unit were offset by double-digit increases in its apparel and footwear categories. These increases were offset by declines in the appliances and consumer electronics categories.  Kmart's comparable-store sales decrease reflects increases in the apparel and footwear categories, offset by declines in the consumer electronics category.

Sears Canada expects to report a comparable store sales decline of 6.2% for the quarter. The decline is primarily due to sales decreases in electronics, home decor, hardware and apparel, partially offset by increases in major appliances and mattresses.

Ahead of annual meeting, Sears predicts Q1 income growth

HOFFMAN ESTATES, Ill. — Ahead of its annual shareholders' meeting, Sears Holdings has provided first-quarter guidance calling for net income between $155 million and $195 million (between $1.46 and $1.84 per diluted share from continuing operations) versus a net loss from continuing operations of $165 million ($1.53 loss per diluted share from continuing operations), for the first quarter in 2011.  The above range includes approximately $235 million, after tax and minority interest, of gains from the sale of certain U.S. and Canadian stores. These transactions generated $440 million of cash proceeds.

For the first quarter, Sears Holdings reported a total same-store sales decline of 1.3%. Comps were down 1% and 1.6% at its domestic and Kmart units, respectively.

The sales decline at Sears' domestic unit were offset by double-digit increases in its apparel and footwear categories. These increases were offset by declines in the appliances and consumer electronics categories.  Kmart's comparable-store sales decrease reflects increases in the apparel and footwear categories, offset by declines in the consumer electronics category.

Sears Canada expects to report a comparable store sales decline of 6.2% for the quarter. The decline is primarily due to sales decreases in electronics, home decor, hardware and apparel, partially offset by increases in major appliances and mattresses.

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