News Brief
Sears Cuts Ad Spend By $45 Million
Aug 20, 2009, 1:10 PM
The bleeding continues at Sears Holdings, and the Hoffman Estates, Ill.-based company says it lost $94 million in its second quarter, compared to net income of $65 million in the same period a year ago. The loss comes despite massive cuts in its selling and administrative costs, including a $45 million reduction in its ad spending for the quarter.
Total revenues fell $1.2 billion to $10.6 billion for the quarter, and same-store sales at domestic stores dropped 8.6%, based on a 12.5% fall at Sears stores and a 3.9% dip at its Kmart stores. The company attributed the decline to continued weakness in appliance sales, as well in clothing.
"While the overall retail market remains difficult and its impact is reflected in our results, we continue to take actions to increase the efficiency of our operations," company execs say in its earnings release. "We have reduced our selling and administrative expenses by approximately $1 billion over the past four quarters, including a reduction of $212 million this quarter." It says its ad spending cuts occurred mostly in Canada.--Sarah Mahoney
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