Sears Holdings Reports Decreased Appliance Sales At Sears Domestic Stores
Sep 5, 2013
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Sears Holdings Corp. reported a second quarter 2013 net loss attributable to shareholders of $194 million, compared to $132 million, in the same quarter of the prior year.
In the second quarter of 2013, overall domestic U.S. comparable store sales declined 1.5%. Kmart comparable store sales were down 2.1%, Sears Domestic comps were down 0.8% and Sears Canada comps were down 2.5%.
The decline in Sears Domestic comparable store sales was caused in part by decreased sales of home appliances. This was partially offset by increases in the lawn & garden and other categories.
Online business on sears.com and kmart.com grew 20% over the prior year second quarter.
"We made meaningful progress this quarter in our transformation to a member-centric company," said Eddie Lampert, Sears Holdings' chairman and CEO. "Shop Your Way members represented over 65% of our sales and they redeemed rewards points at a significantly higher rate than last year. While the increase in Shop Your Way promotional activity and member redemptions resulted in a meaningful increase in our costs, it demonstrates that our members are deepening their engagement with our program, which will allow us to further accelerate our transformation.
Lampert added: "At the same time we recognize how important it is to improve the profitability of our company and I am disappointed that we did not deliver a better result."
Second quarter revenues were down $596 million to $8.9 billion, compared to revenues of $9.5 billion in the same quarter of 2012. The decrease was primarily from having fewer Kmart and Sears full-line stores in operation. Revenues were also impacted heavily by the separation of Sears Hometown and Outlet Stores in the third quarter of 2012.
Revenues were also impacted by lower domestic comparable store sales.
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