Sears Holdings' (NASDAQ: SHLD) second quarter report, issued today, reflects a slump in both the domestic Sears and K-Mart store sales. Net income dropped from $294 million to $176 million, and diluted EPS fells from $1.88 to $1.17. The shortfall didn't catch analysts by surprise, though; those polled by Thompson had been expecting $1.132. U.S. Sears stores suffered a drop-off in sales of 4.3% for the quarter and 3.9% for the first half, while K-Mart declined a 3.8% for the quarter, 4.1% for the half. The lone strong performer was Sears Canada, where sales grew by 3.4%.
The company reported that K-Mart's most troublesome product areas were lawn and garden, home, and health and beauty products, while women's apparel performed slightly better than expected. Sears Domestic took a hit in home appliance sales, especially weather-related items such as air conditioners, while electronics and apparel sold fairly well.
Sears also purchased almost 10 million shares of its stock at an average price of $153.66 in this quarter. The stock has since dropped to the $140 neighborhood, down today in early trading.
Bloggers including our own Julie Tilsner have made no secret of their distaste for the Sears customer experience, and I feel the same way about the increasingly tawdry K-Mart chain. Comparing Sears' recent performance to competitors such as J.C. Penny (NYSE: JCP) and Target (NYSE: TGT), our opinion seems to be shared by many shoppers.
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Reader Comments (Page 1 of 1)
8-30-2007 @ 12:15PM
WENDELL ANDERSON said...
THIS IS ONE OF THE MOST DISGUSTING STOCKS ON THE MARKET. WE ORIGINAL K-MART COMMON STOCK HOLDERS GOT NOTHING FOR OUR STOCK..WORSE THAN ENRON!! APPROXIMATELY ONE YEAR AFTER THE SEC REORGANIZATION, THE STOCK WAS SELLING FOR ABOUT $100 A SHARE. THIS REALLY HURT AND IT CONTINUES WITH THE VENTURE CAPITAL TAKEOVERS BY GREEDY MILLIONAIRES WHO COULD CARE LESS. HOPE THE STOCK MARKET PAYS THE PRICE. CACTUSWEN@AOL.COM
8-30-2007 @ 12:22PM
WENDELL ANDERSON said...
WHY A LAWSUIT AGAINST SEARS HOLDING WAS NOT INITIATED IS BEYOND ME. WE HAD K-MART
COMMON STOCK...IT WAS DECLARED WORTHLESS AND WE GOT NOTHING FOR IT. THE SEC APPROVED A REORGANIZAION OF K-MART AND SEARS. NEW STOCK WAS ISSUED AND IN ABOUT A YEAR IT WAS SELLING FOR OVER $100 A SHARE...CAN YOU IMAGINE A COMPANY LIKE K-MART TAKING OVER SEARS...THE MONEY BOYS DID A GRAND DEAL AT THE EXPENSE OF SMALL INVESTORS. WE DO NOT PLAN TO BUY MUCH STOCK IN THE FUTURE...AND HOPE OTHERS DO THE SAME.