Sears loss widens in Q3
Hoffman Estates, Ill. — Sears Holdings Corp. reported Thursday that its loss for the quarter ended Oct. 31 widened to $218 million, compared with a loss of $127 million in the year-ago period. The loss was more than analysts expected as margins fell and sales dropped, especially at the company’s namesake stores.
"While Kmart improved profitability, our third-quarter results were disappointing, in large part due to lower sales of apparel and appliances at Sears," said interim CEO W. Bruce Johnson.
Total revenues decreased $512 million to $9.7 billion for the quarter, compared with total revenues of $10.2 billion a year earlier. The company attributed the decline partially to a 4.8% decrease in domestic same-store sales.
The domestic same-store sales decrease included declines of 0.7% at Kmart and 8.2% at Sears Domestic.
Sears Holdings, parent company to Sears and Kmart, operates approximately 3,900 full-line and specialty retail stores in the United States and Canada.
Limited Brands profit surges in Q3
Columbus, Ohio — Limited Brands reported Wednesday that net income for the quarter ended Oct. 30 soared to $61.3 million, compared with $6.1 million a year earlier. The company also said it would repurchase $200 million in shares.
Same-store sales increase 10%, and net sales were $1.99 billion compared with $1.78 billion last year.
“The significant increase in our year-to-date earnings and the continued disciplined management of inventory, capital spending and our capital structure have resulted in a very strong cash and liquidity position,” said Leslie H. Wexner, chairman and CEO. “We are confident in our ability to deliver substantial growth in our business and to generate significant free cash flow.”
Limited Brands, through Victoria’s Secret; Pink; Bath & Body Works; La Senza; C.O. Bigelow; White Barn Candle Co. and Henri Bendel, operates 2,665 specialty stores in the United States and its brands are sold in more than 700 company-operated and franchised additional locations worldwide.
American Eagle Outfitters profit drops, sales improve
Pittsburgh — American Eagle Outfitters reported Thursday that net income for the quarter ended Oct. 30 was $33 million, compared with $59.2 million in the year-ago period. The drop was largely a result of investment losses and a prior-year tax benefit, and masked growth in sales and margins.
Total sales for the quarter increased to $752 million, compared with $736 million last year.
Same-store sales increased 1%.
“Our third-quarter results reflect meaningful progress toward our goals and demonstrate the positive impact of recent initiatives,” said Jim O’Donnell, CEO.
American Eagle Outfitters operates 937 stores in the United States and Canada.