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.
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.