Sears' future hanging on holiday sales

[Zayre88]

Sears' future hanging on holiday sales
Poor showing may jeopardize retailer in '09, analysts say

By Sandra M. Jones | Tribune reporter
November 18, 2008

It was four years ago this week when billionaire investor Edward Lampert stunned Wall Street by announcing that Kmart Holding Corp., the discount chain he resurrected from bankruptcy, had agreed to buy Sears, Roebuck and Co., America's largest department store chain.

"This is going to be an enormous undertaking," Lampert said at a New York news conference at the time.

Few wanted to heed Lampert's cautionary tone. The stock in the new company soared as investors bet that the hedge fund guru would find a way to turn two ailing retailers into cash cows.

That never happened. Now, Sears is running out of options.

(...) As Sears Holdings Corp. heads into its fourth holiday season, its shares are trading at a record low of $33.82, down from more than $100 as recently as September and a high of $191.93 in April 2007.

The stock market values the company at $4.3 billion, one-third of the $12.3 billion value put on the stock-and-cash deal when it was completed in March 2005.

As Americans worry about their jobs, debt and homes, they are buying less of the goods Sears sells: appliances, tools, tires and clothing.

http://www.chicagotribune.com/business/chi-tue-sears-outlook-1118-nov18,0,1753604.story

[Zayre88]

S&P cuts Sears rating deeper into junk territory
Thu Dec 4, 2008 2:28pm EST

NEW YORK, Dec 4 (Reuters) - Standard & Poor's on Thursday cut its ratings on Sears Holdings Corp deeper into junk territory, citing weak operating results and an expectation that sales and earnings will remain under pressure into 2009.

Sears reported a wider-than-expected quarterly loss on Tuesday, and said it approved the repurchase of up to $500 million of common shares. For details, see [ID:nN01512002]

"Although Sears is managing inventory tightly and reducing expenses, profitability declined sharply due to negative sales leverage and higher-than-expected levels of markdowns," S&P said in a statement.

"We believe Sears' competitive positioned has weakened given the intense competition from its peers, an underinvestment in its store base relative to its peers, and a merchandising strategy that has not resonated with consumers," S&P added. "These factors have contributed to a steady decline in sales and profitability."

S&P cut Sears' corporate credit rating one notch to "BB-minus," three steps below investment grade, from "BB." The outlook is negative, indicating an additional downgrade is more likely over the next one-to-two years.

http://www.reuters.com/article/bondsNews/idUSN0452080120081204

[Zayre88]

Sears suffers 3Q loss of $146 million, to close 8 more stores
Dec 2, 2008

HOFFMAN ESTATES, Ill. (AP) — Sears Holdings says hefty charges and weak results at its U.S. department stores and Kmart locations drove it to post a third-quarter loss, and the retailer says it will close eight more underperforming stores this year.

The Hoffman Estates, Ill.-based company, led by financier Edward Lampert, also boosted its stock buyback plan by $500 million.

Sears Holdings Corp. reported a loss of $146 million, or $1.16 per share, compared with year-ago profit of $4 million, or 3 cents per share. Excluding a hefty charge related to 14 store closings and gains on Sears Canada hedges, Sears posted a loss of 90 cents per share in the latest period.

Revenue dropped 8 percent to $10.66 billion from $11.62 billion on lower domestic same-store sales.

Analysts surveyed by Thomson Reuters expected a much smaller loss of 49 cents per share on higher revenue of $10.93 billion.

Sears says it will close eight additional underperforming stores and post a related $21 million pretax charge in the fourth quarter.

http://www.google.com/hostednews/ap/article/ALeqM5imTOVIR8LCwd1qFDdcoVToPkd4UgD94QHVV80

[NJxxJon]

Their Black Friday Ads sucked. I have a family history with sears ...haha. My dads credit and my bro getting thrown out of one in high school. Long story.

[CTAmeshopper]

That's it. they're pretty much done for.

$33.82 per share?

GEEEEEEEEEEEEEEEEEZ

:o