Sears 3Q loss widens

HTT Staff -- Home Textiles Today, 11/17/2011 1:52:20 PM

Hoffman Estates, Ill. - Sears Holdings reported its third consecutive quarterly loss for the year as both margins and same-store sales fell.
"Kmart's gross margin rate declined 60 basis points mainly due to increased markdowns in apparel and home, as well as declines in other categories. Sears Domestic's gross margin rate declined 50 basis points primarily due to reduced margins in the home appliance and consumer electronics categories, partially offset by improvements in the apparel and home categories, and declines in home services. Sears Canada's gross margin rate declined 290 basis points as a result of clearing inventory, due to an enhanced focus on improving inventory productivity," the company announced.
Net loss for the quarter ended Oct. 29was $421 million, or $3.95 per share, compared to a net loss in the year-ago quarter of $218 million, or $1.98 per share.
Consolidated revenues fell 1.0% to $9.6 billion. Overall comp slipped 0.8%, the result of operating fewer Sears and Kmart stores than a year ago, the company stated.
Sears Canada experienced a 7.8% decline in same-store sales. Comps declined 0.9% at Kmart and 0.7% at Sears U.S.