Sears Holding Corp Shares Sink on Slipping Sales

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Sears Holdings Corp (NASDAQ:SHLD) stock was down on Thursday following the release of its earnings report for the first quarter of 2018.

Sears Holding Corp Shares Sink on Slipping Sales

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During the first quarter of the year, Sears Holdings Corp reported revenue of $2.89 billion. This is a massive drop from the company’s revenue of $4.20 billion from the same time last year. However, it was still able to come in above Wall Street’s revenue estimate of $2.86 billion for the quarter.

Sears Holdings Corp notes that roughly two-thirds of the decline in revenue for the quarter was due to its closing of several stores. The chain also notes that is saw comparable stores sales at Kmart locations drop 9.5% and Sears stores saw comparable store sales decline by 13.4%. The total drop to comparable store sales for the quarter was 11.9%.

Sears Holdings Corp also reported losses per share of $3.93 for the first quarter of 2018. This is worse off than its losses per share of $2.15 from the first quarter of 2017. It was also a blow to SHLD stock by coming in well below analysts’ losses per share estimate of $1.51 for the period.

Net loss reported by Sears Holdings Corp for the first quarter of the year was $424 million. This is a decline from the company’s net income of $245 million reported in the same period of the year prior.

Sears Holdings Corp also reported an operating loss of $217 million. The retail company’s operating income from the first quarter of the previous year came in at $349 million.

SHLD stock was down 9% as of Thursday morning.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/sears-stock-down-on-q1-earnings/.

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