SEARS LOSES $800 MILLION & CEO “RESIGNS” FOR “HEALTH REASONS”

20 comments

Posted on 8th January 2013 by Administrator in Economy |Politics |Social Issues

COMING TO A MALL NEAR YOU

 

Time to buy Sears stock. It’s a can’t miss. Jim Cramer’s buddy, Eddie Lampert, has now appointed himself CEO of Sears. This douchebag has had control of Sears for ten years and he’s run it into the fucking ground. They are lucky to have JC Penney around, so they can claim they aren’t the worst run retailer on earth. Their quarterly sales declined again. Their sales have been in decline since the day Lampert took over. He was touted by the MSM as the next Warren Buffett. What an investing genius. He has managed to drive the Sears stock price from $180 to $40 in just five years. Sears will lose $800 million during a year where the economy was supposedly expanding. Imagine how well they will do in 2013 as the economy flounders in recession. Expect the store closing announcements in the spring. I just know Eddie will turn this around. I sure hope the former CEO’s “Health Problems” clear up with his $5 million severance package. 

Chart forSears Holdings Corporation (SHLD)

Sears Holdings Announces Leadership Transition

Louis D’Ambrosio to Step Down Due to Family Health Matters
Edward S. Lampert, Chairman of the Board, to Serve as Chief Executive Officer

HOFFMAN ESTATES, Ill., Jan. 7, 2013 /PRNewswire/ — Sears Holdings Corporation (SHLD) today announced that Louis J. D’Ambrosio will step down as Chief Executive Officer for family health matters at the end of the company’s fiscal year on February 2, 2013.  Edward S. Lampert will then assume the role of CEO of Sears Holdings, in addition to his role as Chairman of the Board of Directors.  Mr. D’Ambrosio will remain on the Board until the company’s next Annual Meeting of Stockholders to be held in May 2013 and will be available to assist with a smooth transition.

“The Board greatly appreciates Lou’s strong leadership in accelerating the transformation of Sears Holdings, and we understand and respect his personal decision to step down,” said Mr. Lampert.  “Lou has guided Sears Holdings during a time of rapid industry change to become a more customer and Member-focused company and positioned us to lead in Integrated Retail.  His contributions to our company have been significant, and the entire Sears Holdings family wishes Lou and his family the very best.”

Mr. Lampert added, “In light of Lou’s decision to step down, the Board feels it is important that there is continuity of leadership during this important period of transformation and improvement at Sears Holdings.  I have agreed to assume these additional responsibilities in order to continue the company’s recovery and sustain the momentum we are experiencing, as well as further the development of the management team under the distributed leadership model, which provides our business unit leaders with greater control, authority and autonomy.  Working closely with the Board, management and our dedicated associates, we will remain focused on executing our goals, improving operations and building sustainable long-term value for shareholders.  All of this starts with delivering great experiences to our Members.”

Mr. D’Ambrosio said, “It has been a true privilege to serve the customers, Members, shareholders and associates of Sears Holdings.  This was a very difficult decision, but necessary for family considerations.  Sears Holdings is a remarkable company going through an exciting transformation to serve its Members with excellence in Integrated Retail.  I wish both the company and our talented associates much success in completing the transformation of Sears Holdings and look forward to supporting Eddie and the rest of our management team during the transition.”

Update on Fourth Quarter
Separately, the company today announced an update for its fourth quarter-to-date performance.  The company currently expects:

  • Adjusted EBITDA for the fourth quarter of between $365 million and $465 million as compared to $351 million last year ($254 million domestically and $97 million in Sears Canada), with domestic Adjusted EBITDA of between $325 million and $395 million;
  • Adjusted EBITDA for the full year of between $560 million and $660 million as compared to $277 million last year ($176 million domestically and $101 million in Sears Canada);
  • Reported net loss attributable to Holdings’ shareholders for the quarter ending February 2, 2013 will be between $280 million and $360 million, or between $2.64 and $3.40 loss per diluted share.  This includes an estimated non-cash charge of approximately $450 million related to pension settlements from our voluntary offer to term-vested employees and $42 million of pension expense.  Adjusted for these items, net income is expected to be between $132 million and $212 million, or between $1.25 and $2.00 per diluted share.  The range excludes the potential impact, if any, related to store closings and impairment charges and restructuring activities including severance.  In the fourth quarter of the prior year, the Company reported a net loss attributable to Holdings’ shareholders of $2.4 billion, or $22.63 loss per diluted share which included a non-cash impairment charge of $551 million, a non-cash charge of $1.7 billion relating to a valuation allowance against our deferred tax assets and other adjustments which can be found in our 8-K filed on February 23, 2012.  Adjusted for these items, net income was $58 million, or $0.54 per diluted share.
  • Reported net loss attributable to Holdings’ shareholders for the full year ending February 2, 2013 will be between $721 million and $801 million, or between $6.80 and $7.56 loss per diluted share, which includes the estimated fourth quarter non-cash charge of approximately $492 million related to pension settlements and expense, as well as the year-to-date adjustments found in our 10-Q filed on November 16, 2012 and excludes the potential fourth quarter impact, if any, related to store closings and impairment charges and restructuring activities including severance. Adjusted for these items, net loss is expected to be between $123 million and $203 million, or between $1.16 and $1.92 loss per diluted share. For the full year ended January 28, 2012, the Company reported a net loss attributable to Holdings’ shareholders of $3.1 billion, or $29.40 loss per diluted share which included a non-cash impairment charge of $551 million, a non-cash charge of $1.7 billion relating to a valuation allowance against our deferred tax assets and other adjustments which can be found in our 8-K filed on February 23, 2012. Adjusted for these items, net loss was $482 million, or $4.52 loss per diluted share.

“We expect to generate domestic EBITDA improvement for the fourth consecutive quarter, and have reduced net debt by $400 million as of December 29, 2012,” said Mr. D’Ambrosio. “We have also made considerable progress on our strategic priorities of transforming the company around Integrated Retail and our ShopYourWay membership program.” 

The company currently plans to release financial results for its fiscal 2012 fourth quarter and full year on or about February 28, 2013, before the market opens.

20 Comments
  1. bluestem says:

    A few more years, maybe months?, and the stock price may hit the teens, then it would really be a steal. John

    Like or Dislike: Thumb up 4 Thumb down 0

    8th January 2013 at 10:12 am

  2. Eddie says:

    Take the money and run.

    Health problems my ass.

    Well-loved. Like or Dislike: Thumb up 11 Thumb down 1

    8th January 2013 at 10:21 am

  3. Gene says:

    Was in the Sears Hardware in Phoenixville PA this weekend. My kids and I made up half of the customers in the store. Total ghost town on a Saturday afternoon. I guess I’ll need a new place to get furnace filters soon.

    Well-loved. Like or Dislike: Thumb up 8 Thumb down 0

    8th January 2013 at 10:30 am

  4. Wyoming Mike says:

    Damn, and only 20 years til I get my pension!

    Like or Dislike: Thumb up 3 Thumb down 0

    8th January 2013 at 10:38 am

  5. Administrator says:

    I thought all the Sears Hardware stores closed three years ago. The one near my house is still vacant.

    Like or Dislike: Thumb up 3 Thumb down 0

    8th January 2013 at 10:45 am

  6. beast rudolfo says:

    reality bites. i’d be sick if i lost $1 let alone $800 million of ‘em.

    b.r.

    Well-loved. Like or Dislike: Thumb up 6 Thumb down 0

    8th January 2013 at 10:46 am

  7. JIMSKI says:

    Anyone remember when Sears was full of high quality products made in America and staffed with knowledable associates who could and would help you?

    Niether do I.

    Well-loved. Like or Dislike: Thumb up 11 Thumb down 0

    8th January 2013 at 10:58 am

  8. Chicago999444 says:

    Dumbest move Sears ever made was abandoning it’s core mission of selling hardware, and work clothing and equipment for blue-collar jobs, and trying to rebrand itself as a “high fashion” store. The chain really lost its way 25 years ago and hasn’t been able to get back on track, but is just another me-too chain with nothing that others don’t offer more of, cheaper, and better.

    You used to be able to go to Sears for stuff like heavy work shoes, industrial-grade flashlights, and good, solid durable home appliances. But when I went looking for an apt model washer/dryer, the sales associate could not tell me things like how many gallons of water the washer would use in a cycle or whether it could run on 120 V. As usual, the store looked disheveled and unkempt, as Sears stores have looked for the past 30 years. I desultorily wandered through the women’s clothing and accessories on my way out the door, and there was nothing there that I would call high fashion, except that they did have a sale on some nice fur-lined kid gloves.

    Well-loved. Like or Dislike: Thumb up 9 Thumb down 0

    8th January 2013 at 11:07 am

  9. fool on the hill says:

    Yup.

    And Do any of you remember Eddie Bauer.

    Great stuff thirty years ago until they went into the rag market and endorsing FIX OR REPAIR DAILY.

    Guess the only survivor will be the maniac from Freeport………….LL ………ayyuh.

    Like or Dislike: Thumb up 1 Thumb down 0

    8th January 2013 at 11:24 am

  10. Stucky says:

    Actual coupon you can redeem.
    Sears-ab122109.jpg

    Well-loved. Like or Dislike: Thumb up 9 Thumb down 0

    8th January 2013 at 11:35 am

  11. Stucky says:

    Early 1900′s — you could order a home from the Sears Catalog
    aurora.jpg

    Well-loved. Like or Dislike: Thumb up 9 Thumb down 0

    8th January 2013 at 11:39 am

  12. AWD says:

    Another post about the demise of Sears. Yawn.

    If they still sold pre-fab Frank Lloyd Wright homes they might make a profit. Or maybe open a “red light special” section in stores. Prostitution has always been a profitable enterprise.

    Like or Dislike: Thumb up 3 Thumb down 2

    8th January 2013 at 12:15 pm

  13. Tator says:

    Sears pissed me off 35 years ago over a credit card application. I had only been in my current job 50 weeks and they required 52. I said OK just hold the application two weeks and process it then. They said I would have to come back and resubmit a NEW application.

    I told them I would never step foot in a Sears again if that was their only solution. They refused to change their position.

    In those 35 years I have furnished 4 houses and bought hundreds of tools. They lost all that business because I never went in one again.

    Well-loved. Like or Dislike: Thumb up 15 Thumb down 0

    8th January 2013 at 3:36 pm

  14. Dave Doe says:

    The CEOs health problems most likely stem from Eddie Lambert wanting to rip his heart out after losing $800,000,000 dollars.

    The real joke here is that somebody with an MBA can run a business without understanding how it works. Wall Street has just destoryed an American Institution. RIP.

    Well-loved. Like or Dislike: Thumb up 8 Thumb down 0

    8th January 2013 at 10:26 pm

  15. biggtmofo says:

    There were a couple of Sears Hardware stores that closed last year because the “landlord” is leasing it to a better custormer. Long story short both are closed and the stores are empty. Their paint department in two large stores was liquidated recently. Now I bought interior and exterior paint as I have rentals and always need paint. 75% off can’t say no. I will also remark that when I do go to Sears because of their good return policies I have bought a lot of barely used tools, what a hook up. HD and Lowes can’t touch that! It does feel that the store is on it’s last legs. Stores are old and in bad or dying malls. Malls are dead anyways.
    The best description of Sears is a Hedge Fund disquised as a retailer. Their stock is down because the value of the company is real estate and look how that is going. The actual process of selling stuff doesn’t count. Oh year forgot cards that charge 26% interest.

    Good comments

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    8th January 2013 at 11:25 pm

  16. DC says:

    AUG 15 13

    Dear Mr. Lane of Sears:

    Today, in the afternoon, after I returned from the physical Sears store locations in the Northridge Fashion Center (California), I called Sears Blue Ribbon Line by phone, and I left a description with a Mr. Dave Hall. I appreciate Mr. Hall’s service.

    The contents of this message is important. It is based on real life experience, particularly from a customer’s point of view. If the customer has bad experiences, money will not be spent at your retail locations and that will be bad for business. This is factual for you. The goal should be for Executive Relations to improve the customer experience.

    I am going to itemize the facts and I would like for you to treat this as a checklist for assisting me and improving the customer experience for other shoppers.

    The information will have some good feedback, but more negative reviews. Everything I write is from first hand experience over the past 3 days, and also from previous experience over the years.

    The checklist will be numbered. Because I am doing this from memory, I may forget to include some items.

    (1.) Craftsman Membership Rewards Card.

    During today’s visit, and also my past 3 visits to the Sears location, I did not necessarily have my Craftsman card. When I issued my unchanged telephone number, the membership database on the computer did not recognize my number or any information about me. On each of the past 4 visits, under the membership, I did not receive any discount of my costs. There was no account information. I did not receive any savings for buying Sears/Craftsman products. I received no savings on patronage to the Sears store.

    (2.) Tools & Hardware Center.

    The tools and hardware center is located in the basement of this Sears location. One associate was a seasoned individual. Another associate on the floor was a young Philipino man. I want to let you know that these associates were very friendly and service oriented. They gave considerate interaction and provided me with information for the small tools and electrical multimeter that I eventually bought.

    The prices on the screwdrivers sets and similar Sears tools was good, and because of the combination of these things I would be inclined to visit the Hardware Center again if I need parts or hand tools.

    Again, the Craftsman membership information was not shared universally in the computer system. I did re-provide the information with associate, who was very cordial.

    I did not receive any discounts for my purchases.

    I want to emphasize that the two associates I mentioned are excellent, high quality representatives of your organization. I hope you recognize their dedication to service.

    (3.) Replacement/New Air/Tire Inflator Unit #28.75117.

    When I went to the Hardware Center in the basement, I was looking to buy the replacement tire inflator unit.

    The Hardware Center had large contruction type/contractor compressors, but they did not have inventory on the smaller, more portable home/auto/garage tire inflator system.

    Because the tire inflator units were not in inventory, I was directed to go to the Sears Auto Center in the parking lot.

    When I went to the Sears Auto Center, the last aisle had tire inflators, but majority of them were 12V. I had no interest in weak 12V system. I specifically wanted a 120V home wall plug/electrical 120V compatible unit.

    I found 1 unit, and there were no other choices to make a better selection.

    I read the box for specifications and warranty to get a mild introductory idea about the system capabilities.

    When I approached one of the associates about the “durability” and performance of the unit, that associate was presenting an absence of product information. The only thing he provided information was that the product had not experienced many returns from other customers.

    The referenced associate did not show a desire or a command of product knowledge, and was not particularly engaging, informative, conversant, or professional.

    Another associate that appeared to be having more tenure indicated that though this was a Craftsman product, it was not subject to a Craftsman discount–which was self-contradictory.

    I again did not receive any percentage off the purchase, though I have been a Craftsman member for years.

    The second associate stated that though the statement he made was contradictory, that was company policy, and he could not resolve anything or make any changes.

    The entire operation was very inconsideration from committing to customer service in terms of listening, product knowledge, customer commitment, helpfullness, and general tact and retail sophistication.

    The service was probably some of the worst I have ever had. Notwithstanding, I made my purchase, because I had a need when I went in the auto center, and I just made a choice to try the product.

    I have no assurance at all whether this new inflator will break after the 3rd use; I am just going to have to test it and find out by hands on experience.

    I don’t plan on visiting your auto center for anything in the future, but other customers will be in a position where they need knowledge, trust, service, and fair price on mechanic repairs, and their experience will be completely dependent on integrity and positive helpfullness.

    My personal advice on this is the manager needs to have some college education, and the training and shop discipline is nonexistent.

    (4.) Warranty.

    Because electrical equipment is subject to failure in direct relationship to quality of construction, I really require a 3 year warranty on my electrical equipment purchases. Please send me this as a letter in writing.

    If these products fail again in a short duration, I just won’t purchase a Craftsman product in the future.

    I have to have confidence of the performance, life, durability, and reliability of the system.

    (5.) eGift Card.

    I had many items to address and I gathered my belongings, but I somehow, on the way out the door, I forgot to pick up my paper printout for my gift card.

    When I was at the store, there was no way to draw the credit information to execute the purchases at the cashier registers.

    Therefore, I had to make an additional trip back home to pick up the paper and return to the several locations, and make the purchases.

    If a computer with full internet connection was available, I could have retrieved the information out of my Yahoo! e-mail.

    In any case, I had to drive back home, and double back to present my documentation. It was 100 degrees and uncomfortable in many ways.

    (6.) Bike Section/Road Bike Front Derailleur.

    In the basement of the Sears, there is a sporting goods section. In small section, there is bikes. I needed an economy quality road bike derailler compatible with Shimano, but there was no selection of inventory at the store.

    (7.) Men’s Athletic Wear.

    I purchased 1 Everlast athletic shorts and 2 athletic shirts. These were very good and impressive products.

    The T-shirt selection and cotton sports shirts were very good, and I liked the colors.

    But, for the athletic shorts, a lot of them were bland or made of very thin material construction. I know from use that those kind of shorts would not handle any degree of wear and tear.

    There also was not a lot of attractive options in styles of design patterns.

    The Everlast was very good. You should consider bringing in another competitive brand and patterns. If I saw something appealing, I probably would have bought another pair of shorts, even though I don’t need them.

    (8.) Men’s Shorts.

    This was a massive product quality disappointment.

    I canvassed the entire Men’s Apparel on the 3rd Floor. I looked very hard. I wanted to purchase a pair of stylish purple, charcoal gray, and black plaid Khaki type shorts.

    Though Sears had large quantities of shorts, nothing was attractive to me as a consumer of retail goods: a lot of sizes were too small, materials seemed thin and flimsy, designs were not catching, displays were not really neat.

    A lot of the shorts inventories seemed to be targeted at a non-conservative, younger shopper, with no clean colors and clean lines. In the past, I found shorts that looked crisp, clean, and polished.

    This situation definitely ignores the middle age man (though I understand this demographic is not your main).

    The main point is I was open to purchase one more pair of shorts, but there was nothing I liked in the store.

    You have great Docker’s Khahi pants and similar, I think some classy, clean looking knee length shorts would be easy for you to present and generate revenues.

    (9.) Air Inflator Failure. Reconditioning.
    Model 28.75117.
    120V, 3.3 AMP, 2/3 HP.

    This is the old Craftsman air inflator that failed in the middle of normal usage of simple bike tire inflation. This is the item that precipated the original contact.

    I would like for you to assist me by shipping this back to the manufacturer for reconditioning the unit, and perhaps reducing the engine noise.

    It would be very positive if this could be restored. It would avoid a lot of environmental waste.

    Over the years, this unit has filled up car tires and bike tires.

    I did not see any comparable units at your store. Though the motor makes too much noise, the design and portability is a good idea. It makes sense.

    I hope you can make the repair arrangements to help me.

    (10.) Shop Sears Again.

    I don’t enjoy shopping. I only shop when I need something, not want something. I buy to make a use to finish some work or goal.

    Since I have a little credit balance, I will visit Sears again in the future, and see if I can find the tools or shorts I could not find this time around.

    Your gift card got me into the store.

    If you have any recommendations, feel free to call me or send an e-mail.

    Please take steps to address these items.

    Like or Dislike: Thumb up 0 Thumb down 0

    8th January 2013 at 5:12 pm

  17. DC says:

    I’m sorry, but I forgot one item

    (7A.) Men’s Athletic Wear.

    I need a jockstrap. The one I purchased 18 years ago is wearing out and no longer holds my nuts in place. I need triple extra small, as I am not all that well endowed. I had to humiliate myself by asking a very attractive young lady to help me. But she only laughed to the point of tears. Please fire her, and order some tiny fucking jockstraps. Thank you,

    Like or Dislike: Thumb up 3 Thumb down 0

    8th January 2013 at 5:41 pm

  18. Administrator says:

    Whenever Avalon wants to get a bit frisky, and I am having trouble with, well, you know what, I think about JC and Sears going broke. Voila, I am good to go. Better than Viagra. Had to stop thinking about IKEA going broke ’cause that clinched the deal way too soon.

    Like or Dislike: Thumb up 0 Thumb down 0

    8th January 2013 at 6:31 pm

  19. mike says:

    Dc sorry you have such a small Penis , I would think the medical community might just have some kind of fix for you ..

    Like or Dislike: Thumb up 0 Thumb down 0

    8th January 2013 at 5:29 am

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