Sears Holdings Corp. said late Tuesday it lost more than $2 billion previous year, and its historical operating results indicated doubt about the future of the company that started in the 1880s as a mail-order catalog business.
Sears's forewarning comes after more optimistic signs from the company, which has been working on a turnaround under Chief Executive Officer Eddie Lampert.
A 10-k document filed yesterday included a going concern notice, even though it added its revival strategy unveiled in February to cut stores and reduce staff would be sufficient for a year at least.
Saunders said Sears would probably have a hard time meeting its obligations as the year progresses. Excluding charges that can be listed as one-time events, the loss is $4.57 billion, says Ken Perkins, who heads the research firm Retail Metrics LLC, but how the losses are stacked no longer seem to matter.
The retailer has in recent years sold off many assets, from Lands' End to its Craftsman tool brand to some of its best stores, staving off liquidity crunches. It's been probably 10 years that Sears holdings has been struggling in one fashion or another.
Sears Holdings Corp (NASDAQ:SHLD) opened at 9.18 on Tuesday.
The company has been considering selling other businesses such as the Kenmore appliances and DieHard auto battery brands.
At this point, the stores are doing all they can to stay afloat but have expressed "substantial doubt" about chances of survival.
Russian Hackers Indicted for Yahoo Breaches
In all 500 million Yahoo accounts were stolen, and the accounts of at least 18 users of other email services were compromised. This is the first time that the USA government has presented charges regarding cyber-attacks against Russian officials.
If Sears stumbles, its landlords will be in a tough spot because many of them are still grappling with trying to fill empty Target stores following that US retailer's failure in Canada in early 2015. In other words, many think Sears will go under.
Johnson, though, believes one avenue for Sears could be returning to its roots as a direct-to-consumer company, only using the internet versus the old catalog.
Sears Holdings Corporation (SHLD) have shown a high EPS growth of 6.50% in the last 5 years and has earnings decline of -96.20% yoy.
Mr. Lampert owned almost 10 per cent of the real-estate investment trust that paid Sears $2.6-billion for stores that it purchased, many of which were then leased back to the retailer.
As part of the Craftsman sale, Sears Holdings reached an agreement with the Pension Benefit Guarantee Corp. that puts a claim on some Sears' assets in an effort to protect pensions of retired employees.
Sears Holdings sales have been imploding for years now, and the company has now lost a total of nearly $10 billion in the last six years.
Since 2012, Sears' annual revenue has fallen 47 percent to $22.1 billion, and the company has posted $10.54 billion in losses, including $2.22 billion in the year ended January 28.
Sears said it expects "to generate additional liquidity through the monetization of our real estate and additional debt financing actions".
- Nedved relishing 'fascinating' 2015 final repeat against Barca
- 'Beauty and the Beast' Nabs $350 Million Worldwide
- Kim Jong-nam's embalmed body can remain from rotting for three months
- The Sea Turtle That Ate 915 Coins Has Died
- Notre Dame vs. Princeton: Score and Twitter Reaction from March Madness 2017
- Rebels and Syrian regime clash near Damascus
- Syrian rebels, families begin leaving Homs district in deal with govt
- CAROLINE ANSELL MP: My dismay over a second Scotland referendum
- Southgate looks to steer England into calmer waters
- Kim Kardashian Tells Paris Robbery Story Tonight on 'KUWTK'