Sears Holdings Corp. reported third quarter 2012 increases in appliance sales, although these could not offset decreases in sales in other categories.
Sears Domestic stores saw increased comparable store sales in home appliance categories.
The largest negative impact Sears Domestic and Kmart stores was in consumer electronics, with ongoing price compression and a continuing market shift to smartphones and away from digital cameras, GPS devices, MP3 players, and camcorders.
Sears Canada's 3Q 2012 comparable store sales saw improvement in home appliances and other categories, but comps were down 5.7% overall from sales decreases in snow throwers, electronics, and other categories.
Sears Holdings reported a third quarter 2012 loss (EBITDA) of $156 million, compared to a loss of $190 million in the third quarter of 2011. Domestic adjusted EBITDA was a loss of $164 million in 3Q 2012, from a loss of $182 million in 3Q 2011. Sears Canada's adjusted EBITDA in the quarter showed earnings of $8 million in 2012 versus a loss of $8 million in 3Q 2011. Net loss was $498 million in 3Q 2012, from $410 million in 3Q 2011.
Sears Domestic's comparable store sales were down 1.6% in 3Q 2012, Kmart comps were down 4.8%. Sears Canada's comparable store sales were down 5.7%;
"Our EBITDA improvement in the quarter came from some of our most important categories like Appliances, Apparel, and Home Services as we introduced new offers, honed pricing, effectively managed costs and implemented better inventory management," said Lou D'Ambrosio, Sears Holdings' president and CEO. "We did experience shortfalls, however, in categories like Grocery and Household and Consumer Electronics, and are taking actions to improve that performance."
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