Sears Holdings Q3 Loss Narrows, While Revenues, Comps Down - Quick Facts

(RTTNews) - Retailer Sears Holdings Corp. (SHLD) reported Thursday that its third-quarter net loss attributable to shareholders was $558 million or $5.19 loss per share, narrower than last year's net loss of $748 million or $6.99 loss per share.

Adjusted EBITDA improved $100 million to negative $275 million from negative $375 million in the prior year third quarter. The company said the improvement reflected the restructuring actions taken in the first three quarters of 2017.

Total revenues of approximately $3.66 billion fell from revenues of $5.03 billion in the prior year, with store closures contributing to over half of the decline.

Revenues were also negatively impacted by reductions in the number of pharmacies in open Kmart stores, as well as the reduction in consumer electronics assortments in both Kmart and Sears stores.

Total comparable store sales declined 15.3% during the quarter. Kmart comparable store sales decreased 13.0%, while Sears comparable store sales declined 17.0%.

Edward Lampert, Chairman and Chief Executive Officer, said, "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."

Looking ahead to the fourth quarter and beyond, the company said it expects to continue to develop new ways to leverage the Shop Your Way platform aiming to improve comparable store sales trends and associated profitability.

The company also expects to diversify revenue streams through third party partnerships in several of its businesses including Sears Home Services, Innovel, Kenmore and DieHard.

The company plans to maintain extreme cost discipline focus in light of continued headwinds across the retail sector.

In pre-market activity, Sears shares were gaining 3.6 percent to trade at $4.36.