Sears Stock Leaps On Plan To Wipe Out $1 Billion In Costs
In a bid to survive, Sears is taking a sledgehammer to its costs. The struggling retailer said on Friday that it’s planning to cut costs by at least $1 billion this year. It will also seek to reduce its debt and pension obligations by $1.5 billion. Shares, which have lost 60% of their value in the last year, soared 40% to $7.60 in pre-market trading. Sears has struggled mightily to revive sales in recent years and also reported preliminary results from another rough holiday quarter. Same-store sales declined 10.3%, driven by a 12.3% decrease at its namesake Sears stores and an 8% decline at Kmart stores. As such, the retailer has been bleeding cash and said it will likely lose another $535 million to $635 million in the fourth quarter. That compares to a $580 million loss a year earlier. Revenue is expected to plunge 16% to $6.1 billion. Read more at Forbes.