SEARS HOLDINGS REPORTS LOSS OF REVENUES IN SECOND QUARTER
Illinois-based Sears Holdings Corporation announced its financial results for its second quarter, ended July 30, 2016, with the company continuing to report losses.
Revenues decreased approximately $548 million to $5.7 billion, compared to revenues of $6.2 billion for the quarter ended August 1, 2015. Its Kmart and Sears Domestic divisions’ comparable store sales declined 3.3 percent and 7 percent respectively, although Kmart saw increases in its apparel sales, among other categories.
On the plus side, the company’s adjusted EBITDA rose from last year, the company generated cash proceeds of $176 million from the sale of real estate properties and other asset sales, and it accepted an offer from ESL Investments, Inc. to provide $300 million of additional debt financing secured by a junior lien against our inventory, receivables and other working capital.
“We continue to face a challenging competitive environment and while we continue to focus on our overall profitability, including managing expenses, we reported a net loss for the second quarter,” said Edward S. Lampert, Sears Holdings’ chairman and Chief Executive Officer. “We are encouraged by the year-over-year improvement in our Adjusted EBITDA and feel we are making progress in our transformation as we remain focused on our best stores, our best members and our best categories to drive our business and enhance the member experience.”