Sears Sales Fall; Posts Loss

  • May 19, 2011
Sears posted a $170 million loss for the first quarter, compared with net income of $16 million a year ago. And total sales for the company fell $341 million to $9.7 billion, driven lower by a 5.2% decline in comparable-store sales at its domestic Sears stores and a 1.6% dip at its Kmart division. Drops were in the low double digits for appliances, but apparel and consumer electronics categories also sank. The Hoffman Estates, Ill.-based company says sporting goods, jewelry and footwear categories gained.

"Our first quarter was adversely impacted by unfavorable weather, economic pressures facing our customers, and comparisons to last year's government-sponsored stimulus program relating to the purchase of appliances," Lou D'Ambrosio, Sears' new CEO/president says in its release. "However, we also fell short on executing with excellence. We cannot control the weather or economy or government spending. But we can control how we execute and leverage the potent set of assets we have. We are taking actions intended to leverage our suite of assets, including extending our leadership position in appliances, capitalizing on the scope of our portfolio and marquee brands such as Kenmore, Craftsman, DieHard, and Lands' End, extending our lead in home services, revitalizing our Sears' apparel business and delivering an extraordinary customer experience at the store, online and in home."

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