This bloated pig is on the butcher’s table. It’s dead pig walking. I thought they were closing 200 or so stores based on what I had read in the past. Lo and behold they have closed 562 stores, or 25% of their existing base from one year ago. Wow. That sure sounds desperate. Now for the funny part. I assume they closed their 25% worst performing stores. You would think that would result in higher sales in the remaining stores, as the reverse cannibalism affect would occur. Well these retailing geniuses managed to generate NEGATIVE same store sales of 7.5% to 9.6% at their disgustingly run down Kmart and Sears stores. Maybe their merchandise sucks and their staff is on par with their customers.
This despicable example of a retailer has now jumped far ahead of JC Penney in the bankruptcy race. Their balance sheet says it all:
- How could these idiots close 25% of their stores and only reduce the inventory on their balance sheet by 4%? This is a disaster in the making as this terrible Christmas season will leave them drowning in inventory.
- They have only $294 million of cash, but owe over $700 million in debt in the next year.
- They have NEGATIVE $1.3 billion of equity and $7.5 billion of long term debt and obligations.
If you can’t make money after closing your 25% worst stores, you are dead. Eddie Lampert is a blithering idiot who keeps doing real estate deals to keep this bloated pig afloat. I predict this sucker will be declaring bankruptcy before June of 2016. More empty anchor locations coming to a ghost mall near you.
Sears narrows loss, but revenue falls 20%
Sears Holdings Corp. narrowed its loss in the third-quarter as the company closed some stores.
Kmart same-store sales declined 7.5%, while Sears domestic same-store sales were down 9.6%, as apparel and consumer electronics sales declined.
Still, Chief Executive Eddie Lampert remains optimistic about returning to profitability “by concentrating on our best stores, rewarding our best members and pursuing our best categories.”
Sears had 1,687 stores at the end of the third quarter, down from 2,249 a year earlier.