Sears falters badly in Q2
The Sears Holdings train appears to be running off the track as the company reported declines in sales, profits, comp store sales and margins for the second quarter. Total revenue fell 4% to $12.2 billion from $12.8 billion a year ago, driven by weaker results at Kmart and U.S. Sears stores. Comp store sales were down 3.8 percent at K-Mart and 4.3 percent at domestic Sears stores.
In a statement, CEO Aylwin Lewis expressed disappointment with 2nd quarter results. However, analysts were far less kind. The Associated Press quoted Howard Davidowitz, chairman of Davidowitz and Associates as saying “The worst is yet to come, “If Eddie Lampert’s strategy is right, then Wal-mart’s wrong, Target’s wrong, Limited is wrong, every great retailer in the history of America is wrong.” Others called Sears Holdings a hedge fund, not a retailer.
The stock was down more than 10% in early trading Monday as investors wait to see what future months will bring.
