so far this year's 3rd quarter results were the worst at a loss of$750 million- with same store sales down 12-13% for the first 2 months of the quarter could the loss be $1 billion or even more?
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Total sales will be down approximately 21% remember besides a same store sales decline of 13% another 8% of sales were lost to store closures. Don't forget profit margins are down year to year also so gross profit could be down say 25% from last year. Did SHLD cut costs 25% from last yer overall? I say no and thus the loss is bigger
Good estimates- thanks- yes everyone is sick of the transformation nonsense- did you see eddies comments today saying tens of millions are active shop your way members... How's that working out for him?
with the SLOC & secured loan & holiday sales down 13% I've raised my estimate to a Q4 $881 million loss & FY loss to a staggering $2.4 billion give or take a couple pennies & with all the PR about Sears dying who wants to shop at whats left - the transformation is wayyyy to late
The info on the store loss was part of their press release today.
Last year's 4q saLes figures were 7.3b. If they continue tracking to the same level for the rest of the quarter, then they will rack up sales of 6.4b. There's no reason to believe they will turn that around this month. Now that doesn't measure SG&A and fixed costs, but the top line is poor, and despite their efforts to cut costs, they could easily lose a massive amount, perhaps as much a 1b.
Do you have a link to that loss info or was this an internal statement?
they said the 150 stores they are closing had a combined loss of $60 million last year - but last years combined losses were over $1.5 billion so these stores aren't even the worst- they are still on the books.
$1 billion would take out all the loans that eddie has made and more so far this year. You cannot survive losing $1.75 billion in 2 quarters which they would have done at that point, moving forward because things are deteriorating faster than they thought and they cannot close stores fast enough. This year they will be on target for operating losses of $3 billion which takes out all the remaining assets and with debt repayments due- whats left. Craftsmen was supposed to be the jewel in the crown, so kenmore is worth a lot less than $900 million and diehard probably nothing. The real estate left is the worst of it and even that is being consumed by eddies loans- he wants to raise another $1 billion from re - thats probably all of whats left- one quarters worth of losses maybe. Then there is innovel and sears home services- worth what maybe $750 million. The operating losses are increasing at such a rate its cannot be saved, they are consuming all loans and assets within a matter of months.