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Total revenue fell 14.3 percent to $5.03 billion in the third
quarter ended Oct. 29, hit by lower demand at its Kmart and
Sears outlets. Sears has not posted an increase in quarterly
sales in the past five years.
The company has slashed costs, sold off assets and taken on debt
from Chief Executive Edward Lampert's hedge fund and other
investors to establish a profitable business model built around
a smaller store base, online services and a loyalty program,
with little results to show.
"We cannot guarantee when we will return to profitability, but
it is our intention to do so as soon as possible," Chief
Financial Officer Jason Hollar said in a presentation.
Once the largest U.S. retailer, Sears has lost its standing as
customers move to online shopping or rivals such as Wal-Mart
Stores Inc.
The company said on Thursday it reduced the size of its pharmacy
business, which operates in many of its Kmart stores, in the
third quarter, and would seek to provide pharmacy services
through its "Shop Your Way" loyalty plan.
Sales at stores open at least a year fell 7.4 percent, due to
weak sales in several categories including apparel, grocery and
consumer electronics.
Net loss attributable to Sears' shareholders swelled to $748
million, or $6.99 per share, from $454 million, or $4.26 per
share, a year earlier.
The company said it would continue to cut costs by seeking
alternatives for its real estate portfolio, the Sears Home
Services business and the unit housing Kenmore appliance,
Craftsman tools and DieHard vehicle battery brands.
Lampert, unable to find buyers or partners for the two
businesses, offered last week to buy a bigger stake in Sears
Hometown and Outlet Stores Inc, if it entered into a partnership
for the brands.
Sears' shares were unchanged in premarket trading. Up to
Wednesday's close, they had fallen 41 percent this year.
(Reporting by Sruthi Ramakrishnan and Siddharth Cavale in
Bengaluru; Editing by Saumyadeb Chakrabarty)
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