|
.
Shares of the company, which has been struggling with years of
losses and falling sales, were up 39 percent at $7.70 in
premarket trading on Friday.
The company - controlled by its billionaire chief executive,
Edward Lampert - announced a new plan to cut costs by at least
$1 billion in 2017 by reducing overhead, improving merchandise
at its stores and through better inventory management.
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 <WMT.N>.
To cope with the slump, Sears has cut costs, spun off some of
its stores into a real estate investment trust, raised debt from
Lampert's hedge fund and put some brands on sale.
The company has, however, failed to turn a profit in more than a
year and said in December there was no guarantee when it would
return to profitability.
Sears said on Friday it sold five Sears full-line stores and two
Sears Auto Centers for $72.5 million in January and engaged
Eastdil Secured to raise at least $1 billion from the sale of
its real estate.
The retailer said last month it sold its lawn and garden
equipment brand, Craftsman, to Stanley Black & Decker Inc <SWK.N>.
Sears said it would use proceeds from these sales, improving
profitability and working capital management to reduce its debt
and pension obligations by $1.5 billion in fiscal 2017.
The company had pension and post-retirement benefit liabilities
of $2 billion as of Oct. 29.
Sears also estimated revenue of $6.1 billion and a loss of
$535-$635 million in the fourth quarter ended January.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Saumyadeb Chakrabarty and Anil D'Silva)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
