Sears Holdings: New CEO Hired to Take Sears Private?
Feb 25, 2011
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Sears Holdings Corp. reported revenues decreased $103 million to $13.1 billion for its fourth quarter ended Jan. 29, 2011. Full year revenues decreased $717 million to $43.3 billion. The decreases were primarily due to lower comparable store sales and fewer Kmart and Sears full-line stores.
Fourth quarter operating income was $663 million, compared to $749 million for the quarter ended Jan. 30, 2010. Operating income decreased $86 million on lower sales.
Operating income was $474 million in 2010 and $713 million in 2009. The drop in operating income was blamed primarily on lower sales.
The Sears board last night that it had named Lou D'Ambrosio to be CEO – a position vacant for 3 years. Several commentators immediately jumped on the choice, pointing out that D'Ambrosio has no merchant experience but, according to the Sears press release, "Mr. D'Ambrosio led Avaya through a going private transaction."
With major shareholder (also current board chairman and former Sears Holdings CEO) Edward S. Lampert continuing to acquire Sears Holdings shares, several industry watchers have said they believe the intent is to take Sears Holdings private.
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