Sears Holdings Corp. (NASDAQ:SHLD) is closing 100 to 120 stores even
as the retail conglomerate reported a 5.2 percent fall in comparable
store sales for the quarter-to-date, citing fall in consumer electronics
and home appliance categories.
For the eight-week period ended December 25, the Hoffman Estates,
Illinois-based company said sales at Kmart and Sears Domestic stores
declined 4.4 percent and 6.0 percent, respectively.
Following lower sales and continued margin pressure, Sears expect
fourth quarter consolidated adjusted EBITDA to be less than half of $933
million reported in the year-ago period.
The company also sees a fourth quarter a non-cash charge related to a
valuation allowance on certain deferred tax assets of $1.6 to $1.8
billion.
Sears said its plan to shut down 100 to 120 Kmart and Sears Full-line
stores is expected to generate $140 to $170 million of cash.
The stock, which has been trading in the 52-week range between $43.99 and $94.79, closed at $45.85 on Friday.