In a recent SEC filing, Sears has reported that it will generate a positive net income in the fourth quarter following the federal tax reform package. However, comps for the quarter continued to decline.
In a filing with the United States Securities and Exchange Commission, Sears Holdings stated that it would report fourth quarter company net income of between $140 million and $240 million with the inclusion of a non-cash tax benefit of approximately $445 million to $495 million related to tax reform and a non-cash impairment charge related to the Sears trade name of between $50 million and $100 million.
In the quarter a year earlier, Sears posted a company net loss of $607 million inclusive of a $381 million non-cash impairment charge related to the Sears trade name.
Sears Holdings stated that it expected total comparable store sales for the fourth quarter to decline 15.6%, with comps down 12.2% at Kmart and 18.1% at Sears year over year.
Total revenues should come in at $4.4 billion for the 2017 fourth quarter, according to Sears estimates, compared to $6.1 billion in the year-previous period. Fourth quarter 2017 results are from a 14-week period ended February 3, 2018, while the 2016 quarter consisted of 13 weeks.