Sears Delivers 2Q Loss

-- Home Textiles Today, 9/7/2009 12:00:00 AM

Hoffman Estates, Ill. —

Sears Holdings cut costs during the second quarter, but not fast enough to stay ahead of falling revenue, and wound up with a $94 million loss. Wall Street had been expecting a profit of 35 cents per share. The loss was 79 cents per share compared to a year-ago profit of 50 cents per share, or $65 million.

"While the overall retail market remains difficult, and its impact is reflected in our results, we continue to take actions to increase the efficiency of our operations," said Bruce Johnson, Sears Holdings' interim ceo and president.

The company closed 28 stores during the quarter, taking a charge of $61 million, or 32 cents per share after taxes. It also reduced selling and administrative expenses by $212 million during the quarter for a total SG&A reduction of $1 billion over the past four quarters.

Revenue fell 89.8% to $1.2 billion from $11.8 billion a year ago. Sears attributed the decline to lower comps and a $126 million impact from unfavorable currency exchange rates. Total U.S. comps fell 8.6%, with Sears' comps off 12.5% and Kmart's down 3.9%.