Hoffman Estates, Ill. Sears Holdings Corp. revealed to investors on Monday that it is lowering its 4Q profit estimates, posting earnings below Wall Street forecasts as eroding sales push its profit down as much as 57%.
The retailer said it expects to earn between $350 million and $470 million for the quarter ending Feb. 2. Sears earned $820 million in the fourth quarter a year earlier.
Sears blamed growing competition, a slowdown in the housing market and consumers’ credit fears for slumping sales figures. The company said its domestic same-store sales dipped 3.5% during the nine-week holiday season because of poor performance in Kmart’s seasonal categories and Sears’ apparel and tools.
Books-A-Million holiday sales up 5.3%
BIRMINGHAM, Ala. Books-A-Million Thursday announced 5.3% increase in sales for the holiday period.
The company reported that sales for the nine weeks ended Jan. 5 were $130.8 million compared with $124.2 million for the same period last year. Comparable-store sales for the period were flat compared with the same period last year.
Commenting on the results, Sandra Cochran, president and ceo, said, “The sales environment for the holiday season proved challenging as we confronted softening economic conditions and a value conscious consumer. Nonetheless, we saw good results in a number of our core book categories as well as strong performances in bargain books and the gift department.”
Macy’s Inc. Nov.-Dec. comps down 1.1%
CINCINNATI Macy’s Inc. Thursday reported total sales of $4.6 billion for the five weeks ended Jan. 5, a decrease of 7.4 % compared to total sales of $5 billion in the five weeks ended Dec. 30, 2006.
The company reported that on a same-store basis, Macy’s Inc. sales were down 7.9% in December. According to the company, this is below guidance for December same-store sales to be down between 4% and 7%.
For the November-December period combined, Macy’s Inc.’s same-store sales were down 1.1%.
“Given the calendar shift between November and December, we noted previously that the two-month holiday selling period needed to be viewed together rather than each month individually,” said Terry Lundgren, Macy’s Inc. chairman, president and ceo. “After a strong November, we had hoped that a more positive sales trend would continue through December. But macroeconomic trends led customers to spend cautiously for the holiday. That said, we remain on track to be within our guidance for same-store sales in the fourth quarter, albeit at the low end of the range of down 2% to up 1%.”
The company expects January same-store sales to be down by 4% to 6% compared with last year.