As you can tell from yesterday’s post about Stanley Black & Decker, I spent part of the day pouring over financial reports and filings.
Sears won’t release their 4Q 2013 or full-year 2013 report until the end of this month, but they did provide early figures.
In the fourth quarter of 2013, Sears saw 9.2% fewer comparable store sales than for the same period in 2012. For 2013 as a whole, sales were down 4.2% (as of Jan 6, 2014).
This means that less and less people are shopping at Sears, and that Sears shoppers are spending less money there.
Sears Domestic’s quarter-to-date comparable store sales decline is attributable to decreases in most categories including consumer electronics, tools and home appliances.
It looks like Sears’ total monetary losses are expected to continue. They lost considerable amounts of money in 2012, although not as as bad as in 2011, and have closed a lot of the stores that consistently operated at high losses.
It is expected that Sears’ final 4Q 2013 and 2013 numbers will reflect losses of hundreds of millions of dollars. Fourth quarter losses are expected to be less than in 2012, but 2013 total losses are expected to be higher.
We currently expect our reported net loss attributable to Holdings’ shareholders for the quarter ending February 1, 2014 will be between $250 million and $360 million…
For the full year ending February 1, 2014, the Company expects our reported net loss attributable to Holdings’ shareholders will be between $1.3 billion and $1.4 billion…
Last year, Sears reported losses of $489 million for the fourth quarter of 2012, and $930 million for all of 2012.
Sears is still pulling in a lot of revenue, but they continue to lose money. That Sears saw a 9.2% decrease in comparable store sales for the fourth quarter, which includes the entire winter holiday shopping season, is not a good sign.
Expected losses of several hundred million dollars in the fourth quarter and over one billion dollars for the year does not bode well for Sears or Craftsman.
Craftsman is still a very popular hand and power tool brand – one of my favorites – and I sincerely hope that Sears can reverse or at least reduce their decline.
Sears is still in big trouble, and they MUST take action if the company is to survive.
Source: Sears Jan 9th, 2014 Update