Sears Holdings $1.4 Billion Loss: Appliances Contribute
Feb 28, 2014
| Print this page
Sears Holdings Corp. reported that a decline in Sears Domestic full-year sales included decreases in home appliances, as well as consumer electronics, tools, and most other categories. Sears Holdings' fiscal year ended Feb. 1, 2014.
(Sears Hometown and Outlet Stores (SHOS) results were not included in these results. SHOS operates Sears Hometown Stores, Sears Hardware Stores, and Sears Home Appliance Showrooms. SHOS separated from Sears Holdings in October 2012.)
It was just one unpleasant bit of data in Sears Holding's full-year results—including the report of a net loss for the full year of $1.4 billion. The loss was even bigger than the previous year's loss of $930 million.
Sears Holdings Chairman Edward S. Lampert, in his letter accompanying the release of the results, pointed out repeatedly that 2013 was a lousy year for many retailers. His letter included extensive quoting from a recent Wall Street Journal about shifting customer habits and the effect that online shopping is having on brick-and-mortar stores.
But Lampert wrote that, "All of these dynamics are ones for which Sears Holdings has been preparing for years."
He said 2013 was an important year in Sears Holdings' transformation process and added: "I believe 2014 may well be a year in which Sears Holdings begins to clearly demonstrate the advantages of this transformation."
Net loss attributable to Sears Holdings shareholders was $358 million in the fourth quarter, compared to a net loss of $489 million in the fourth quarter of the previous fiscal year.
The net loss was $1.4 billion for the full fiscal year, compared to a net loss of $930 million in the previous fiscal year.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $12 million in the fourth quarter. Adjusted EBITDA for the prior year fourth quarter was $429 million.
Adjusted EBITDA was -$337 million, in the full year of 2013. Adjusted EBITDA for the prior full year was $536 million.
Sears Holdings said net loss attributable to shareholders and adjusted EBITDA amounts for the fourth quarter and full year were both in line with its guidance provided on Jan. 9, 2014.
Sears Holdings Chairman Edward S. Lampert, in his letter accompanying the release of the results, referenced the January 9 guidance: "The fact that none of this is new news…only slightly mitigates the impact of these numbers."
Back to Breaking News