Why Sears Holdings Stock Slipped Today
Shares of Sears Holdings (NASDAQ: SHLD) hit an all-time low today even though there was no direct news on Sears. Instead, the stock seemed to drag on downbeat holiday sales reports by other retailers; however, Sears is not expected to announce holiday sales results. The stock closed the session down 8.5%.
Among the retailers that slipped today were Urban Outfitters, which finished the day down 4.1% as holiday sales were not as strong as expected, and American Eagle Outfitters, which gave up 3.2% as it reiterated its earnings guidance in spite of strong comparable sales growth. The SPDR S&P Retail ETF also closed down 1.2% on a weak day for the sector.
Last week, Sears told its employees it would close another 103 stores, on top of more than 300 store closings it announced last year. That announcement seemed to be further evidence that the retailer was dying a slow death despite a bumper holiday season for most retailers.
It might seem surprising to find Sears at all-time lows as its department store peers have posted strong results during the holiday season. Kohl's said yesterday that comparable sales jumped 7% during the key selling season, and J.C. Penney and Macy's both posted positive results as well last week.
Sears is in a unique situation, however, as the company is posting massive losses and comparable sales are falling by double digits. Even if business is improving for the retail industry, Sears may be too weak and unappealing to benefit from the increased traffic. After a 62% stock price decline last year, I'd expect more of the same in 2018.
10 stocks we like better than Sears HoldingsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Sears Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 2, 2018
Jeremy Bowman owns shares of J.C. Penney. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.