Sears Holdings (SHLD) Posts Wider-than-Expected Q1 Loss of $2.15/Share, Revenues Top Views

Sears Holdings (NASDAQ: SHLD) reported Q1 EPS of ($2.15), $1.43 worse than the analyst estimate of ($0.72). Revenue for the quarter came in at $4.3 billion versus the consensus estimate of $4.05 billion.

Edward S. Lampert, Holdings' Chairman and Chief Executive Officer, said, "While this was certainly a challenging quarter for our Company, it was also one that clearly demonstrated our commitment to return Sears Holdings to solid financial footing. We recognize that we need to accelerate our efforts to improve our operational performance and are moving decisively with our $1.25 billion restructuring program."

Highlights since the beginning of the first quarter include:

• Delivered significant progress on our strategic restructuring program, with $700 million in annualized cost savings already actioned to date, and announced incremental actions to increase our annualized cost savings target to $1.25 billion from $1.0 billion;
• Paydown of approximately $418 million of term loans outstanding under our revolving credit facility;
• Entered into an agreement with Metropolitan Life Insurance Company (\"MLIC\") to annuitize $515 million of pension liability, which serves to reduce the overall size of the Company\'s pension plan, reduce future cost volatility and reduce future plan administrative expenses;
• Reached an agreement to extend the maturity of $400 million of our $500 million 2016 Secured Loan Facility from July 2017 to January 2018, with the option to extend further to July 2018;
• Expanded our Shop Your Way VIP program to reward our members based on spend and frequency, which has resulted in over a 50% increase in the number of VIP members in the first quarter, compared to the same period last year;
• Opened the first DieHard Auto Center in San Antonio, Texas, with an innovative store format that offers state-of-the-art technology and services, that, combined with our experienced associates, can help today\'s drivers make the right choices for their vehicle's needs; and
• Named a 2017 ENERGY STAR Partner of the Year-Sustained Excellence Award winner for continued leadership in protecting our environment through superior energy efficiency achievements.

Mr. Lampert added, "We remain focused on driving the growth of our Shop Your Way ecosystem and are pleased with the traction we gained with our VIP membership base, which more than doubled in the last year."

For earnings history and earnings-related data on Sears Holdings (SHLD) click here.

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