With a double digit comparable sales decline, the second quarter proved hard for Sears Holdings and its store network.
(SHLD) reported a loss for the second quarter that narrowed from last year and said it will close 28 Kmart stores later this year. Already in fiscal 2017, Sears has closed 180 stores and another 150 sites are slated to be shut by the end of the third quarter.
In pre-market deals Sears shares were up 53 cents, 6.18%, with the stock changing hands at US$9.10 per share.
"As much as the company is very poor at retailing, it is very good at financial management to ensure it stays afloat", Saunders says. Sears has been scaling back pharmacy and electronics operations and said, with results adjusted for those developments, Sears comps declined 12.1% and Kmart comps declined 6.8% compared to the second quarter of past year.
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The dollar index last stood at 93.101 .dxy , having retreated from a three-week high of 94.145 set last Wednesday . In Europe, London's FTSE 100 was up 0.7 percent to 7,370 while Germany's DAX rose 0.7 percent, too, to 12,155.
Questions over Sears' future have mounted this year, particularly after the company noted in a securities filing that historical operating results indicate "substantial doubt" about its ability to stay afloat. "The comprehensive restructuring of our operations is delivering cost efficiencies and helping drive improvements to our operating performance". And Lampert has criticized talk of the company's demise as "harmful, " and has argued that the company is battling hard to rebound. The Valencia store is one of four in California that will close. But Macy's, with sales better than analysts expected, still missed profit projections.
Sears has stores in Danbury, Milford and Waterbury as well as a hardware store in Shelton. The chain of department stores has trimmed its portfolio of real estate, cut costs and seeks more liquidity. The store in Salina is not on the list, and will remain open.
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