Lower Earnings Make Sear Holdings to Close 120 Stores

Sears Holdings Corporation (NASDAQ:SHLD) announced today that the company has decided to shut down almost 120 stores of its Sears and Kmart brands. The shocking move of the company came in reaction to the lower profit for the fourth quarter which fell more than 50 percent as compared to what company earned last year for the same period.

The move of closing the stores is expected to substantially reduce the company’s working capital costs. Sears is expecting to reduce its inventory levels up to the mark where it can cut its borrowing needs by $300 to $350 million.

As per the report of Hoffman Estates, the company’s sales for the eight weeks declined 5.2 percent. According to the report consumer electronics and apparel contributed the most to the loss. Same store sales fell 4.4 percent for Kmart and 6 percent for US Sears stores. Many analysts also attribute cut throat competition in the industry for the losses of Sears Holdings. Moreover consumer sentiment also remained volatile with sluggish US economy.

Sears Holdings Corporation (NASDAQ:SHLD) fell 27.20 percent to close at $33.38 in today’s session with traded volume of 9.60 million shares while its average traded volume stands at 1.01 million shares per day.

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Alan Smalling

About Alan Smalling

Alan is the latest addition to our news and development team. He has worked with Pete previously on other financial websites. When we can keep him at low altitude, his contributions will mainly be focused on company news and new product launches.

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