Just goes to prove that if you merge two weak companies, you get an even weaker larger company.
* At a time when holiday season sales overall have turned out better than expected, Sears Holdings was an exception. It will close 100 to 120 Sears and Kmart stores after disappointing holiday sales.
* Its stock, having already lost 37% of its value this year, tumbled 20% to $36.61 in early trading.
* Sears plans to take as much as $2.4 billion of charges in the fourth quarter on asset write downs and other items.
* Comparable sales in the eight weeks through December 25 fell 4.4% drop at Kmart and 6% at Sears. In contrast, the National Retail Federation holiday forecast was a 3.8% increase.
* Fourth-quarter EBITDA is now expected to be less than half the year-earlier fourth quarter's.
* Adjusted pre-tax profit is down to about 10% of its five-year peak.
http://www.marketwatch.com/story/sears-holdings-to-shut-up-to-120-stores-2011-12-27
I was at a Sears on December 24 (through no fault of my own). Sears stores suck. No big surprise in any of these numbers.
Tuesday, December 27, 2011
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