Sears' Q4, full year same-store sales, income drop
Sears retools into five units
While Sears Holdings Corp. reported overall declines in same-store sales for the fourth quarter and fiscal year ended February 2, there was a more pronounced decline during the month of January. Sales declines were most apparent in the home appliances and apparel categories, according to the company.
“Our fourth quarter and full year results continued to be negatively impacted by the worsening economic conditions faced by both our customers and competitors, as well as increased markdowns taken to clear excess inventory,” said W. Bruce Johnson, Sears Holdings' interim CEO/president, in a statement.
He added that Sears believes recent restructuring efforts, which have included cutting approximately 200 jobs from its support center locations and reworking its organization structure and operational model, will position it to navigate the difficult conditions that lie ahead.
Sears' fourth quarter domestic comparable store sales declined 4.5% in the aggregate, with Sears domestic same-store sales dropping 4% and Kmart losing 5.2%. For the quarter, revenues decreased $1.1 billion for a total of $15.1 billion.
For the year, domestic comparable store sales declined 4.3% in the aggregate, with Sears domestic store sales dropping 4% and Kmart losing 4.7%. Full year revenues totaled $50.7 billion, compared to $53.0 billion in fiscal 2006.
The company also reported a drop in net income, which in the fourth quarter totaled $426 million, or $3.17 per diluted share, compared with net income of $811 million, or $5.27 per diluted share, in the previous year. For the fiscal year, net income totaled $826 million, or $5.70 per diluted share, compared with net income of $1.5 billion, or $9.58 per diluted share, in the previous year.