Sears Holdings (SHLD) Posts Smaller-Than-Expected Q3 Loss, Revenues Beat

Sears Holdings (NASDAQ: SHLD) reported Q3 EPS of ($2.64), $1.82 better than the analyst estimate of ($4.46). Revenue for the quarter came in at $3.7 billion versus the consensus estimate of $3.34 billion.

Edward S. Lampert, Chairman and Chief Executive Officer of Holdings, said, "In the third quarter, we continued to narrow our losses and delivered another quarter of Adjusted EBITDA improvement of at least $100 million. With the challenging retail landscape continuing to pressure sales, the improvement in Adjusted EBITDA is reflective of the success of the strategic priorities we outlined earlier this year to streamline our operations, reduce inventory and minimize operating expenses, as well as our commitment to our goal of restoring positive Adjusted EBITDA in 2018. Our Shop Your Way membership program and Integrated Retail Strategy remain a key focus for us in order to meet the needs of our members and provide our members with the best experience possible throughout the holiday shopping season."

As we look ahead to the fourth quarter and beyond with a focus on continued improved performance, we intend to:

• Continue to develop new ways to leverage the Shop Your Way platform in order to invest marketing dollars at the member level to optimize returns and improve comparable store sales trends and associated profitability;
• Diversify revenue streams through third party partnerships in several of our businesses including Sears Home Services, Innovel, Kenmore and DieHard;
• Further build on the momentum around our dedicated concept stores similar to the recently opened Sears Appliances and Mattress stores in Camp Hill, Pennsylvania and Honolulu, Hawaii; and
• Maintain extreme cost discipline focus in light of continued headwinds across the retail sector.

Rob Riecker, Chief Financial Officer of Holdings, said, \"The recently announced agreement with the Pension Benefit Guaranty Corporation requires an initial upfront payment to the pension plans which will be secured by 138 properties released to the Company. Once complete, the estimated contributions of $550 million to the pension plans in 2018 and 2019 is eliminated (with the exception of a $20 million payment in July of 2018). Additionally we will be taking action in the near term with respect to certain upcoming debt maturities to provide the Company with further financial flexibility and enhanced liquidity.\"

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

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