Sears is in big trouble due losing their business to online retailers like Amazon but is fighting hard to sustain in the market. Thompson Reuters have been following closely the overall performance of the outlet in the stock market and had a very negative perception and statistics visualized for the near future. The company has been in losses but still managed to stay above the benchmark expected by the analyst in regards to their stock prices and overall revenues for the previous quarter. The analyst expected the share prices to go down up to $3.05 earnings per share but Sears somehow managed to maintain it at $2.15 earnings per share.
In order to save themselves from more damage and loss, Sears had announced that they would cut down their overall cost by $1.25 billion against their last projected cost of $1 billion. This is the first time in last 2 years when they have recorded and displayed profits but the major thanks go to the $525 million cash which they received after selling their Craftsman brand to Stanley Black & Decker. Last year, they recorded a total loss of $471 million but this year the profit shows to be $244 million. Unfortunately, none of the sections that Sears offer goods is doing well leading to the overall loss in their business. The sections would include a decline in the demand of customers for groceries, daily use household items, appliances and pharmacy products.
The downfall is not limited to their individual Sears brand but includes Kmart brand as well. According to the statistics, their overall sales revenue dipped during the last quarter by 11.9 percent and individually Sears faced a higher blow than Kmart with the dip of 12.4 percent against 11.2 percent respectively. CEO Eddie Lampert explained that the company would be focusing on improving the operational activities to get Sears back on track and improve the financial conditions of the company. In order to achieve this position, they have already started their activities and closed down more than 150 outlets which were not performing at all. They also have a target to evaluate the pharmacy product outlet performance and expected to shut down more 90 outlets which are weakening the financial position of the company.
Cost cutting is one of the primary weapons that could help Sears to regain their previous status and the company has announced that they have already managed to save around $700 million till today in their target amount of $1.25 billion at the end of this year.