Thursday August 16th, 2012 - 12:03PM
Sears Holding Corp. narrowed its losses in 2012 Q2, by cutting expenses and reducing inventory in the quarter.
For the period ended July 28, Sears lost $132 million, or $1.25 per share. That compares with a loss of $146 million, or $1.37 per share, a year ago. Revenue dropped 7%, to $9.47 billion.
In the U.S., same-store revenue from Sears stores fell 2.9%. The figure declined 4.7% for Kmart locations.
While the Hoffman Estates, Ill.-based company's adjusted results met Wall Street's expectations, revenue fell short as a result of weaker sales at both Sears and Kmart stores.
According to Sears, competitive pricing caused weaker sales of electronics, and lawn and garden sales also fell, with drought across the country hindering purchases.
Sears managed to trim its selling and administrative expenses in the quarter by reducing payroll and advertising costs. Merchandise inventories fell to $8.7 billion from $9.3 billion. Domestic inventory was reduced thanks to store closings and improved productivity.
Sears, which has more than 3,900 stores in the U.S. and Canada, also reduced its total debt to $3.3 billion from $3.5 billion.