Are any stores profitable at this point?
Wonder how big the next list will be
9 replies (most recent on top)
If they use EBITDAR that would mean MORE profitable stores not let, “Earning BEFORE” which would mean rent is excluded. The exact opposite of the argument you are making.
I'm sure there are profitable stores, but the company as a whole is hemorrhaging money.
I think earnings date is 8/22-8/25 should be very interesting to say the least especially to see how the inventory results plays a part in whatever amount if stores are announced to close
I wonder why the amount of store closures is usually 100-150.. is it that there are limited number of liquidators out there to handle the volume? I’m surprised Eddie doesn’t own the liquidation company too
It’s really sad that sears/Kmart doesn’t even seem to competing anymore for any position in the retail world
We're losing millions of dollars every month but still manage ro turn a prodit. We own the building. Not much stores left with a positive EBITA. But cuts in advertising and payroll are keeping us green.
Profitable vs unprofitable doesn't really seem to matter anymore. They have closed many profitable stores over the past couple years so no on is really safe anymore. Not to mention, since there is less than 1000 stores between both Sears and Kmart, every batch of store closures is going to be significant. Even if it's 100 stores that's over 10% of the stores gone. This year, beyond every other year, is going to the year that Sears and Kmart truly breaks down and dies.
Read the master lease agreement for the Seritage REIT stores. "Profitability" is based on EBITDAR rather than EBITDA. The R being Rent. So the rent for each Seritage store is at a level that turns a positive EBITDA store into the negative when being judged by EBITDAR. So you could have a "profitable" store that is now paying $60,000 a month to Lampert's Seritage and is classified as "unprofitable" by the lease agreement and can be recaptured by Seritage with SHC also paying a 1 time cash fee and 1 year of operating expenses. What a scam!
There's a strong possibility that everything might be announced for liquidation next month. The $ is almost completely gone
@Ul4jR8S-kta I wonder if that is going to be 100 combined or just 100 on the Kmart side plus whatever they windup closing on the Sears store side?!
Next month when they announce the second-quarter earnings as well as the terrible results from inventory I’d heard there will be 100 stores closed.