Sears looks like it may have thrown in the towel. The company acknowledged on Thursday that it has “fallen short” of expectations for any recovery.
Sears reported revenue that fell 12.5% to $5 billion for Q3, with losses at $748 million compared to $454 million in the period last year.
Same-store sales dropped 7.4%, including a 10% decrease at Sears stores and a 4.4% decrease at Kmart stores, while cash and equivalents fell 12% to $258 million in the period.
In an effort to help the losses, Sears said it would continue to accelerate store closing and will be shutting down 64 Kmart stores this month. The company had already closed nearly 80 Sears and Kmart stores in July.
CFO Jason Hollar, commented, “We understand the concerns related to our operating performance. We have fallen short on our own timetable for achieving the profitability that we believe the company is capable of generating. With that said, the team remains fully committed to restoring profitability to our company and creating meaningful value.”
“We believe that our liquidity needs will be satisfied through the foreseeable future using the levers available to us through our portfolio of assets,” Hollar said.
Just one week ago, two highest-ranking executives left the company, Jeff Balagna, former Sears executive vice president, and Joelle Maher, former Sear’s president and chief member officer.
Is this boat going to sink?
Disclaimer: We have no position in Sears Holding Corp. (NASDAQ: SHLD) and have not been compensated for this article.