Sears 2Q loss widens as sales weaken at stores
NEW YORK – It was another bad quarter for Sears Holdings Corp.
The beleaguered retailer, which operates Kmart and Sears stores, said Thursday that its second-quarter loss widened as the company continued to struggle with weak sales and deep discounts.
The results were also hurt by the decline in the number of stores in operation and the lingering effects from its spinoff of the Hometown and Outlet brand.
Shares fell over 8 percent to close down $3.55 at $39.72 on Thursday.
The stock’s now back near the 52-week low of $38.40 that it hit at the end of 2012.
A series of retailers, including Wal-Mart Stores Inc. and Macy’s Inc., have reported disappointing quarterly results this month and have issued bleaker outlooks as shoppers deal with an uncertain economy and an increase in the payroll tax.
Some store executives have also noted that people are shifting spending toward bigger-ticket items like cars and home improvement and away from clothing.
Sears, which caters to middle-income shoppers, faced those pressures on top of its own problems, further clouding the path toward profitability.