We reported an operating loss of $247 million for the first quarter of 2013 which compares to operating income of $315 million for the first quarter of 2012. Operating loss for the first quarter of 2013 included expenses related to domestic pension plans, store closings, store impairments and severance, which aggregated to $63 million. Operating income for the first quarter of 2012 included expenses related to domestic pension plans, store closings and severance, as well as gains on sales of assets and operating income from the Sears Hometown and Outlet businesses which aggregated to operating income of $346 million. Excluding these items, we would have had an operating loss of $184 million and $31 million in the first quarter of 2013 and 2012, respectively. See the attached schedule, “Adjusted Earnings per Share,” for a reconciliation from GAAP to as adjusted amounts, including adjusted earnings per diluted share.
For the quarter, domestic comparable store sales declined 3.6%, comprised of decreases of 4.6% at Kmart and 2.4% at Sears Domestic. The decline at Kmart reflects decreases in most categories, with the largest declines occurring in our highly competitive transactional categories such as grocery & household, pharmacy and drugstore. The decline at Sears Domestic of 2.4% predominately was driven by weather related declines in the lawn & garden category. Excluding lawn & garden, comparable store sales would have increased 0.3%. This slight increase was due to increases in the apparel and home categories, which were partially offset by declines in the consumer electronics and tools categories. The Sears Domestic apparel category has achieved comparable store sales increases for seven consecutive quarters.
ABERCROMBIE & FITCH REPORTS FIRST QUARTER RESULTS
(Thomson Reuters ONE via COMTEX) — New Albany, Ohio, May 24, 2013: Abercrombie & Fitch Co. /quotes/zigman/167627/quotes/nls/anf ANF -10.97% today reported unaudited first quarter results which reflected a net loss of $7.2 million and net loss per basic and diluted share of $0.09 for the thirteen weeks ended May 4, 2013, compared to a net loss of $21.3 million and net loss per basic and diluted share of $0.25 for the thirteen weeks ended April 28, 2012.
Total comparable sales for the quarter, including direct-to-consumer sales, decreased 15% with comparable store sales decreasing 17% and comparable direct-to-consumer sales decreasing 6%. Comparable sales for the quarter, including direct-to-consumer sales, decreased 14% for the U.S. and decreased 16% for international. Within the quarter, comparable sales were weakest in February and March.
Target Reports First Quarter 2013 Earnings
“Target’s first quarter earnings were below expectations as a result of softer-than-expected sales, particularly in apparel and other seasonal and weather-sensitive categories,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation.
In first quarter 2013, sales increased 0.5 percent to $16.6 billion from $16.5 billion last year, reflecting a 0.6 percent decline in comparable-store sales combined with the contribution from new stores. Segment earnings before interest expense and income taxes (EBIT) were $1,239 million in the first quarter of 2013, a decrease of 7.5 percent from $1,340 million in 2012.