SEARS/

Sears Suffers Deeper 3Q Loss as Canada Sales Tumble

By Retail FOXBusiness

The red ink at Sears Holdings (SHLD) grew darker during the third quarter as the parent of Sears and Kmart suffered a steeper-than-expected slump in revenue amid weakness in Canada.

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The disappointing results sent shares of the Hoffman Estates, Ill.-based company sinking more than 4%.

Sears said it lost $421 million, or $3.95 a share, last quarter, compared with a loss of $218 million, or $1.98 a share, a year earlier. Excluding one-time items, it lost $2.57 a share, missing projections from analysts for a lighter loss of $2.29.

Revenue shrank by 1.2% to $9.56 billion, topping the Street’s view of $9.6 billion. Gross margins slipped to 25.6% from 26.5%.

Third-quarter results suffered from deteriorating conditions in its Sears Canada business, which posted a 7.8% tumble in same-store sales. Sears domestic same-store sales inched lower by 0.7%, while Kmart same-store sales declined 0.9%. Online sales surged by nearly 20%.

“Despite improvement in these areas, our overall results were down, led by declines in Sears Canada, consumer electronics and Kmart apparel,” CEO Lou D’Ambrosio said in a statement.

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Shares of Sears declined 4.11% to $65.49 ahead of the opening bell, putting them on track to extend their 2011 slide of more than 7%.

 

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