--> +2.8% pre-open in very low volumes
Sears Hldg misses single estimate by $0.26, misses on revs
Reports Q1 (Apr) loss of $2.85 per share, $0.26 worse than the single estimate of ($2.59); revenues fell 25.3% year/year to $5.88 bln vs the $6.08 bln single est.
Comps:
"We continue to make progress towards the formation of Seritage Growth Properties, a public real estate investment trust or REIT, and its subsequent purchase of properties from the Company. We expect that we will be declared effective by the SEC this week, and are targeting to launch the rights offering on Friday, June 12, 2015. The transaction will involve the sale and leaseback of approximately 235 Sears and Kmart stores, as well as the purchase of our interest in the joint ventures, with expected proceeds to Sears Holdings of $2.6 billion. This, when combined with the proceeds from the previously announced joint venture transactions, will result in proceeds in excess of $3.0 billion."
Comps:
- Kmart and Sears Domestic comparable store sales declined 7.0% and 14.5%, respectively, in the first quarter of 2015 driven by more efficient and targeted promotional and marketing spend, and a focus on sizing certain categories, such as consumer electronics, to better fit member needs, that together generated higher margins and increased profitability year-over-year; revenues were also impacted by port issues on the West Coast
- Domestic Adjusted EBITDA of $(141) million in the first quarter of 2015 compared to $(178) million in the prior year first quarter, which is the third consecutive quarter of improved EBITDA performance on a year-over-year basis
- Sales to Shop Your Way members in Sears Full-line and Kmart stores were 74% of eligible sales for the first quarter
"We continue to make progress towards the formation of Seritage Growth Properties, a public real estate investment trust or REIT, and its subsequent purchase of properties from the Company. We expect that we will be declared effective by the SEC this week, and are targeting to launch the rights offering on Friday, June 12, 2015. The transaction will involve the sale and leaseback of approximately 235 Sears and Kmart stores, as well as the purchase of our interest in the joint ventures, with expected proceeds to Sears Holdings of $2.6 billion. This, when combined with the proceeds from the previously announced joint venture transactions, will result in proceeds in excess of $3.0 billion."