Executives’ solution: close more stores
Sears Holdings posted a $748 million loss in its third quarter of fiscal 2016 (ended Oct. 29), the latest sign of trouble for the struggling retailer.
That’s an increase from the prior year, when it lost a comparatively minor $454 million in the same period.
Comps for the company—which also owns Kmart—fell 7.4 percent during the quarter, though jewelry sales at Kmart increased, the company said.
Analysts are increasingly predicting the company’s end, but executives insisted during a prerecorded conference call that they would forge a path to profitability by making the company smaller and leaner.
“We will continue to accelerate the closing of underperforming stores,” chief financial officer Jason Hollar said on the call. “This is a necessary but painful action as the way consumers shop has changed.”
This is the 20th quarter in a row Sears’ sales have fallen, reports said.
(Photo courtesy of Sears)