Weighed down by slumping sales and tightening margins, Sears (NASDAQ:SHLD) said Thursday it fell deeper into the red during the third quarter than Wall Street had been bracing for, sparking a 4% decline in the retailerâ€™s stock.
The parent of Sears and Kmart said it lost $218 million, or $1.98 a share, last quarter, compared with a loss of $127 million, or $1.09 a share, a year earlier. Excluding one-time items, it lost $1.71 a share, significantly worse than the Streetâ€™s view of a loss of $1.08 a share.
Revenue sank 5% to $9.68 billion, trailing consensus calls for $9.9 billion. Gross margins slid from 27.2% to 26.4%.
Domestic same-store sales declined 4.8% companywide, weighed down by an 8.2% dive in Sears domestic same-store sales. Kmart comparable sales were off by 0.7%.
â€śWhile Kmart improved profitability, our third quarter results were disappointing, in large part due to lower sales of apparel and appliances at Sears," CEO W. Bruce Johnson said in a statement.
Sears blamed the disappointing results in part on â€śunusually warm weather.â€ť
Shareholders punished the stock for the miss, driving its stock down 4.68% to $63.10. The stock has dropped about 20% year-to-date.