Sears, watching its spending, limits 4Q adjusted loss

AP News
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Posted: Mar 09, 2017 7:43 AM
Sears, watching its spending, limits 4Q adjusted loss

HOFFMAN ESTATES, Ill. (AP) — Sears, stung by higher charges, reported a wider fourth-quarter loss, but its adjusted loss was smaller than last year and investors were elated as the department store closely controlled inventory and expenses.

Wall Street looked past falling comparable-store sales as well, and shares rose more than 5 percent in Thursday premarket trading.

For the period ended Jan. 28, the Hoffman Estates, Illinois, company, which also owns Kmart, lost $607 million, or $5.67 per share. That compares with a loss of $580 million, or $5.44 per share, a year ago.

Impairment charges climbed to $409 million, from $203 million.

Losses, adjusted for one-time gains and costs, were $1.28 per share, or 42 cents better than last year on a per-share basis.

Revenue declined to $6.05 billion from $7.3 billion.

Sales at Sears and Kmart stores open at least a year, a key indicator of a retailer's health, dropped 10.3 percent.

Sears same-store sales slid 12.3 percent, mostly hurt by falling sales of appliances, clothing, consumer electronics and tools. At Kmart stores, comparable-store sales fell 8 percent, mostly because of softer sales of consumer electronics, toys, clothing and grocery and household items.

Chief Financial Officer Jason Hollar said in a company release that a challenging holiday season pressured margins and same-store sales, but that Sears Holding Corp. improved profitability by watching its inventory and managing costs.

The company's merchandise inventories shrunk to $4 billion, from $5.2 billion a year earlier. Total costs and expenses declined to $6.77 billion, from $7.84 billion.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SHLD at https://www.zacks.com/ap/SHLD

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Keywords: Sears Holdings, Earnings Report, Priority Earnings