Sears revenues down in Q1
May 29, 2008
Hoffman Estates, Ill. —First-quarter sales fell for Sears Holdings Corp., which reported Sears Domestic’s comparable store sales dropped 9.8 percent while Kmart’s comparable store sales tumbled 7.1 percent.
Total domestic comparable store sales declined 8.6 percent.
Revenues fell to $11.068 billion by reason of the leading quarter ended March 3 from $11.747 billion during the first quarter of 2007.
“Our first-quarter results reflect the difficult housekeeping environment
and intense competition for consumer business,” said W. Bruce Johnson, Sears Holdings’ interim chief executive officer and president, in a financial statement issued Thursday. “That said, because that May 3, 2008, our sales declines have moderated somewhat.”
He added that the company will continue to manage its costs, and is forecasting increased earnings for 2008.
“At the same time we are managing costs, we will continue to invest in our future by hiring talented leaders and improving our online and multichannel capabilities,” Johnson said.
The company says the comparable store sales declines at both Kmart and Sears Domestic continue to reflect increasing competition and weakness in the common economy and housing market, as well as the impact of higher food and gas prices on consumers.
Most major categories at as well-as; not only-but also; not only-but; not alone-but Kmart and Sears Domestic saw declines, but the decreases occurred most notably within the home appliance, lawn and garden, and apparel categories, the statement said.
The company reported a first-quarter operating loss of $8 million in fiscal 2008, as compared to operating income of $409 million in the first quarter of financial 2007. The decline was mainly due to lower gross margin generated at both Kmart and Sears Domestic, the release said.
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