Joined: 05 Jul 2008
Posts: 169
| Posted: Thu Nov 19, 2009 2:41 pm Post subject: The 3rd quarter actual results | |
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http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=U-pAQ14051-U:SHLD-20091119&symbol=SHLD&news_region=U
I wonder how they actual find total comp sales and if they figure in traffic from closing stores, because the stores in my region of the country have been experiencing double digit declines in sales and foot traffic. When I spoke to some friends who work up north their stores where experiencing similiar results and in fact were experiencing severe payroll cuts over the last several months. I don't know if anyone has been into a liquidated store or worked in one but they have been closing stores in my area on a pretty regular basis and I noticed the prices in those stores increase incredibily before public announcement. The discounts from the liquidator are not huge and make many of the items still more expensive than regular prices at their competitors. Apparently there are no state statutes governing this practice where I live because I have seen it time after time, but with that in mind they are still making money from the closing stores and have increased traffic, regardless that the liquidator gets a percentage. And within the release SHC state.. "Costs incurred for store closings and severance include charges related to our third quarter 2009 decision to close seven underperforming stores and our third quarter 2008 decision to close 14 underperforming stores. We expect to record an additional charge of approximately $5 million during the fourth quarter of 2009 as the stores we decided to close in the second quarter of 2009 complete operations. Similar to our previous store closings, we expect that these will be additive to earnings given that the closure of these stores eliminates negative cash flows incurred from their operations, and will generate cash from the liquidation of inventory and from other proceeds. The list of stores closed can be found at www.searsmedia.com. We continue to evaluate our business in an effort to improve the operating results of the Company." |
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Joined: 08 Jul 2003
Posts: 6309
| Posted: Thu Nov 19, 2009 4:00 pm Post subject: Kmart the winner | |
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Kmart eeks out an SSS INCREASE. -huh?
Still sucks though. You have to remember even though Sears didn't DECREASE as much it's still a decline after a decline after a decline etc. Anyone who thinks Sears isn't the one to have their doors shut think again. Kmart has the perception of being the worse of the two but right now it's not true. |
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Joined: 27 Feb 2009
Posts: 47
| Posted: Thu Nov 19, 2009 4:19 pm Post subject: Re: Kmart the winner | |||
Kmart is definitely still the worse of the two. THE SSS increase at Kmart has to do with taking over the shoe department in store instead of leasing it out to a third party. Also, they've been more aggressive in shutting down Kmarts, so some of the weakest stores have been culled. Overall sales are holding up better at Kmart than Sears. The big problem is that Kmart just isn't anywhere near as profitable as Sears, in fact it barely makes money at all, and that's with virtually no capex. SAG (Selling and admin) costs actually rose $2 million in the quarter, which indicates they've cut as far as they can while keeping the doors open. |
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Joined: 08 Jul 2003
Posts: 6309
| Posted: Thu Nov 19, 2009 4:44 pm Post subject: the name will be sold | |
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dingo - ...Kmarts not as profitable as Sears , ...virtually no capex
And that's why the eddie/ESL logic will just dump the brands in there if things get even nastier as Sears. From what I have heard many of the Kmart appliance departments are doing quite well(also may account for enough of Kmarts sales for an increase). To get the the expense structure down at Sears(not that lower expenses will work) would be to have a lower/different commission structure and simply the use of open space for BC displays. I can see HE going into Kmarts. I think Craftsman/tools is too labor intensive for Kmart taste. In the end the Sears employee will be screwed just as bad as anyone by the cheaper replacements. |
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Joined: 28 Apr 2005
Posts: 2175
| Posted: Thu Nov 19, 2009 5:28 pm Post subject: Re: Kmart the winner | |||
Yeah that one surprised me also. It's only due to changes in the shoe department: "their first increase since the fourth quarter of 2005, helped by demand for toys and home categories and the company assuming operation of its shoe business from a third party." Without the change in the shoe business, Kmart would have shown a same store sales decline of about 2.5%. All in all the death spiral for SHC continues. A retail company can't prosper in the long term on a program of "narrowing losses". |
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Joined: 26 Aug 2008
Posts: 306
| Posted: Fri Nov 20, 2009 5:35 pm Post subject: | |||
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http://www.forbes.com/feeds/afx/2009/11/19/afx7141547.html
An interesting quote from there. Something we've all talked about here for a very long time.
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Joined: 06 Jul 2003
Posts: 8380
Location: Central CA
| Posted: Fri Nov 20, 2009 8:51 pm Post subject: | |
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Hard to believe... Balter was one of Eddie's biggest boosters for the first two or three years, probably second only to Cramer in his fawning admiration for the "boy genius". I imagine his tune changed about the time his clients started telling him to take his "boy wonder" and shove him... ah well.
Anyway, he seems to have remembered rather suddenly about a year and a half ago suddenly that he's an analyst, not Eddie Lampert's press agent. Since then he's replaced Davidowitz as the chief pointer outer that the Emperor's bare ass is hanging out for the world to see. And if the image that conjures up doesn't ruin your lunch, I need to try harder. 
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Joined: 04 Jul 2003
Posts: 2400
Location: A little bit sideways!
| Posted: Sun Nov 22, 2009 6:49 am Post subject: | |||
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Shit, did we miss this many store shuttering in the past year?
I guess I did. I culled this list from bubbdog's link. Thanks. http://www.searsmedia.com./tools/closing_11192009.pdf
I didn't paste the whole list but it's 106 CLOSED since 2008. ~GoodFella |
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Joined: 08 Jul 2003
Posts: 6309
| Posted: Mon Nov 23, 2009 1:10 am Post subject: what stores | |
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Nice follow up GF
Since the Kmart bankruptcy was rammed through in record time with many "experts' arguing that Kmart should've closed more stores you don't know wether many of these stores were doomed all decade or recent times just messed them up. One of the Detroit or Chicago newspapers did a piece on the Sears-Kmart real estate/store in July 2004. They did a study where Kmart was selling some of it's prime or best performing real estate. I wonder how much that has affected the Kmart closing list as well. But all this goes back to assortments and price which SHLD/mr ed/the ESL crew decided to ignore and pursue 'the value' customer along NOT completing a true merger. Ain't no value in a decade of SSS declines , financial losses and shakey stock. Didn't even mention the bungled Grand experiment that seems to have NEVER been perfected. |
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Joined: 08 Jul 2003
Posts: 6309
| Posted: Wed Dec 02, 2009 6:23 am Post subject: now and then; a DECADE later | |
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Just some 3Q results from the past and present. A decade later.
3Q -1999: Sears: Revenues- $8.5 Billion , Operating Income $383 million Kmart: Revenues- $8.0 Billion , Operating Income $159 million 3Q - 2004: Sears: Revenues- $8.2 Billion , Operating Income -$85 million(loss) Kmart: Revenues- $4.3 Billion , Operating Income $909 million 3Q - 2009: Sears: Revenues- $5.5 Billion , Operating Income -$123 million(loss) Kmart: Revenues- $3.5 Billion , Operation Income -$72 million(loss) I should note that Sears Canada posted positive operating income of $89 million this 3Q. Over the last decade Kmart's numbers have been basically cut in half. Sears is progessing twards that same results. I should compare these to the competitors to show ineffective,incompetent and irrelevant Sears & Kmart execs were/are compared to the competion. I think the losses Sears was showing in 3Q & year end 2004 are half the reason the Sears chicken shit executives and board enabled the merger. |
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Joined: 28 Apr 2005
Posts: 2175
| Posted: Wed Dec 02, 2009 5:40 pm Post subject: | |
Yep the Lampert plan to not worry about volume and concentrate on profitable sales is really coming together.... 
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Joined: 08 Jul 2003
Posts: 6309
| Posted: Fri Dec 04, 2009 5:23 am Post subject: Sears/SHLD compared | |
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Did some checking on some of Sears competitors for the 3Q 2009. SHLD's competitors including Target,Home Depot,Lowes,JC Penney and Federated.
One competitor that sticks out is that Best Buy apparently had margins of approximately 24% for the 3Q compared to SHLD's 27% . And yet with lower margins Best Buy showed a positive income of $158 million compared to SHLD's $102 million LOSS; that's a quarter billion dollar swing. -Home Depot had the highest net income at $689 million. -Penneys had the highest margin at 40.6%. -Federated also had a income loss of $35 million. -Home Depot had the most revenue/sales at $16.3 Billion vs SHLD's $10.2 Billion. -Lowes had the largest SSS decline @ -7.5% yet still posted 344 million in net/positive income. -Best Buy only got 6% of their income from services. The Best Buy thing with lower margins yet higher profits/income is the most telling. Eddie and the ESL crew have been cutting,cutting and cutting some more to raise margins and profit and yet is loosing more and more. From SEC 10-Qs and 8-ks |
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