Friday August 30th, 2013 - 1:40PM
Sears Hometown and Outlet Stores, Inc. today reported results for its quarter ended August 3, 2013.
Despite a slight sales gain in Q2, Sears Hometown and Outlet Stores reported that operating income decreased 54% to $15.4 million compared to $33.7 million in the prior year. Net income attributable to stockholders decreased 57% to $9.1 million, compared with $21.1 million in the prior year. Comparable store sales increased 1.4% versus the prior year, Sears Hometown and Outlet Stores Inc. reported.
"Second quarter net sales growth of 1.9% reflected comparable store growth of 1.4%, plus the benefit of new store openings. We saw increased sales in most categories, including double-digit growth in lawn and garden and growth in comparable store sales in home appliances," Bruce Johnson, CEO and president, said. "Margins declined, primarily due to an unfavorable product mix in Outlet, our response to an increasingly competitive appliance retail landscape, and lower initial franchise revenues. We are adjusting pricing/promotional plans, enhancing Outlet sourcing capabilities, and focusing on higher margin categories and product lines to improve profitability."
Year-to-date results through the second quarter included: operating income decreased 41% to $40.1 million compared to $68.2 million in the prior year, according to the company. Also in that same timeframe, net income attributable to stockholders decreased 42% to $24.1 million compared to $41.7 million in the prior year.