New York, NY, United States (4E) – Sears Holdings Corp. recorded an even bigger loss in its fiscal second-quarter loss from a year ago because of tighter margins and lower revenue.
In the three months ended Aug. 3, the company logged a wider net loss of $194mn, or $1.83 per share, compared with the $132mn deficit, or $1.25, in the previous year, according to the Hoffman Estates, Illinois-based company statement released Thursday. The loss was at $1.46 per share when excluding some items.
Gross margin fell to 24.6 percent from 26.7 percent. Revenue declined 6.3 percent, to $8.87bn, primarily because of reduced number of operating Sears and Kmart full-line stores.
Sears, which is controlled by hedge-fund investor Edward Lampert, has lately been overhauling its image by selling upscale offerings at its Marketplace section on the web, featuring goods offered by third-party vendors.
Mr. Lampert, who engineered the Sears, Roebuck & Co. and Kmart Holding Corp. merger in 2005, has made e-commerce a priority in an effort to improve the company’s position in the online marketplace, competing against bigger players Amazon.com Inc. and eBay Inc. Mr. Lampert has presided over 26 consecutive quarters of declining sales.
By the end of the quarter, the company has $681mn of cash, equivalents and restricted cash, lower than the $738mn at the end of the same period in 2012.