News
- 2012-01-05 11:59:14
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The Sears Holdings Corporation,the retailer controlled by the hedge fund manager Edward S. Lampert, reported a steeper third-quarter loss than a year ago on Thursday as sales declined in Canada.
The net loss widened to $421 million, or $3.95 a share, from $218 million, or $1.98 a share, a year earlier, Sears said. Sales fell 1.2 percent to $9.57 billion, the 19th consecutive quarterly decline.
Comparable-store sales for Sears Canada fell 7.8 percent in the quarter, and declines in consumer electronics and apparel at the Kmart chain further hurt results, Lou D’Ambrosio, the chief executive, said in a statement. Same-store sales, those at stores open at least 12 months, fell 0.7 percent at Sears in the United States and 0.9 percent at Kmart. Comparable-store figures are made up of same-store sales and online sales, which rose 19 percent from the previous year.
The quarter included a tax-related one-time charge of $100 million.
Stock in Sears, which is based in Hoffman Estates, Ill., fell $3.11, or 4.6 percent, to $65.19 a share.
Another big retailer, Gap, said third-quarter profit declined 36 percent as sales dropped at its Gap unit and at its Old Navy chain.
Net income fell to $193 million, or 38 cents a share, from $303 million, or 48 cents a share, a year earlier, the company said. Analysts projected income of 37 cents, the average of 24 estimates compiled by Bloomberg. Revenue fell 1.9 percent to $3.59 billion.
The chief executive, Glenn Murphy, said the company was “intensely focused” on improving sales through changes to merchandise assortments and marketing plans. Third-quarter comparable sales declined 6 percent at Gap North America and 4 percent at Old Navy.
The company announced early this month that it planned to open about 1,000 stores on Thanksgiving to lure shoppers. Locations that will be open include about 800 Old Navy stores and 116 Gap stores.
Companywide comparable sales, which include online revenue, declined 5 percent compared with an increase of 1 percent a year earlier, Gap said. Sales fell at each of its three units. Banana Republic is the third.
Gap, which is based in San Francisco, reported its results after the close of market trading, and in the after-hours session its stock was unchanged.
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