Sears reports loss as shoppers cut back |
Financial Times - May 19, 2011 |
Sears Holdings swung to a loss in the first quarter as the retailer’s own operating weaknesses were aggravated by the effects of bad weather and pressure on shoppers’ wallets.
The owner of Sears department stores and Kmart, the discount store chain, posted a net loss of $170m, or $1.58 a share, compared with a net profit of $16m, or 14 cents a share, in the same period in 2010, a grim result that was nonetheless in line with market expectations. Sears had said earlier this month that first-quarter losses would come in between $1.35 and $1.81 a share.
Revenues fell 3 per cent to $9.7bn from $10bn a year ago, mainly due to a 3.6 per cent fall in sales at stores open at least a year.
Comparable-store sales at Sears outlets sank 5.2 per cent as consumers cut back on purchases of appliances, clothing and electronics, while Kmart’s same-store sales fell 1.6 per cent due to falling demand for food and pharmacy products.
Read Full Article from Financial Times
- Posted: 2011-05-19 11:11:35
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