Sears lost millions over the holiday season
Sears needed a great holiday shopping season, but the struggling retailer missed the mark.
The company lost $318 million in November and December, according to financial results filed by the company.
Much of the losses came from bankruptcy reorganizaton, which cost about $249 million across the two months. But even without the bankruptcy costs, the struggling retailer lost about $69 million during the two-month period.
The company’s bankruptcy attorneys had said in filings and in courtroom arguments that the company needed a big win during the period.
The company reported sales of $2 billion in December and November, which is roughly in line with what it forecast for the period in bankruptcy filings.
When the company reports earnings for the full quarter, sales are likely to be significantly lower compared to a year earlier. In the quarter ending February 3 of 2018, Sears posted sales of $4.4 billion. Since then it has closed hundreds of stores.
The company has not released annual sales comparisons for the stores that remain open. Sears did not immediately respond to a request for comment about its holiday results.
Sears filed for bankruptcy October 15. It has proposed to sell most of the company’s operating assets, including 425 of its Sears and Kmart stores, to its chairman Eddie Lampert, who wants to keep the company alive. Lampert believes a smaller Sears can be profitable and competitive once again.
Creditors who are owed billions by Sears are fighting the plan and argue they would be better off if the company shuts down and its assets are liquidated. They point to weak sales and continued losses as evidence.
A bankruptcy court judge will hear the arguments in the case Monday.
The holiday shopping season turned out to be disappointing for several major retailers, including Macy’s (M), JCPenney (JCP), Nordstrom (JWN) and Kohl’s (KSS). All of those companies reported results that fell short of Wall Street expectations. But none of those companies are in bankruptcy and facing pressure to go out of business