Sears Holdings Corporation announced financial results for its second quarter ended July 30, 2016 and it wasn’t good (although a loss was narrowed).
- Revenues dropped to $5.7 billion in Q2, compared to revenues of $6.2 billion for Q2 2015.
- Comp sales at Kmart and Sears Domestic stores declined 3.3% and 7.0%, respectively, in the second quarter of 2016 (however, Kmart did note an uptick in jewelry during the quarter).
Edward S. Lampert, Holdings’ Chairman and Chief Executive Officer, said, “We continue to face a challenging competitive environment and while we continue to focus on our overall profitability, including managing expenses, we reported a net loss for the second quarter. We are encouraged by the year-over-year improvement in our Adjusted EBITDA and feel we are making progress in our transformation as we remain focused on our best stores, our best members and our best categories to drive our business and enhance the member experience.
“The decrease in revenue was primarily driven by a 5.2% decline in comparable store sales during the quarter, which accounted for $240 million of the revenue decline, and by having fewer Kmart and Sears Full-line stores in operation, which accounted for $199 million of the decline. In addition, we also experienced a decline in revenues from Sears Hometown and Outlet Stores, Inc. of approximately $75 million during the second quarter of 2016.”
At Kmart, where comp store sales decreased 3.3%, the company experienced comparable store sales increases in several categories this quarter, including toys, jewelry, mattresses and apparel, which were more than offset by declines in the pharmacy, grocery & household and consumer electronics categories.
Sears Domestic comparable store sales decreased 7.0%, primarily driven by decreases in home appliances, apparel, consumer electronics, footwear, lawn & garden and tools.