Sears Holdings Reports Second Quarter Results
Sears Holdings Corporation ("Holdings," "we," "us," "our" or the "Company") (NASDAQ: SHLD) today reported its second quarter 2010 results. In summary, we reported:
-- Net loss attributable to Holdings' shareholders for the quarter of $39
million, or $0.35 loss per diluted share, in 2010 and $94 million, or
$0.79 loss per diluted share, in 2009;
-- Significantly improved profitability in the Kmart format as gross
margin increased 230 basis points over the second quarter last year;
-- Adjusted loss per diluted share for the second quarter of $0.19 in
2010 and $0.17 in 2009, and adjusted EBITDA for the quarter of $254
million in 2010 and $268 million in 2009.
"Kmart continued to improve its performance during the second quarter, as an improvement in its gross margin rate led to increased profitability," said W. Bruce Johnson, Sears Holdings' interim chief executive officer and president. "Overall, our total revenues declined only slightly despite the uncertain economic environment faced by our customers. Expense discipline remained constant in the second quarter as reductions in selling and administrative expenses were achieved even as we continued to invest in initiatives designed to improve our customers' experiences, such as our multi-channel capabilities and the launch of our Shop Your Way Rewards program."
Second Quarter Revenues and Comparable Store Sales
Total revenues decreased $93 million to $10.5 billion for the quarter ended July 31, 2010, as compared to total revenues of $10.6 billion for the quarter ended August 1, 2009. The decline in total revenue for the quarter was primarily a result of a 2.2% decrease in domestic comparable store sales and the effect of having fewer Kmart and Sears Full-line stores in operation, partially offset by an increase of $96 million due to changes in the Canadian foreign exchange rate.
The domestic comparable store sales decrease included declines of 1.4% at Kmart and 2.8% at Sears Domestic. Kmart's quarterly decrease in comparable store sales was primarily driven by the food and consumables category, partially offset by increases in apparel, including footwear, and toys. Decreases in sales for the quarter at Sears Domestic were primarily driven by the power lawn and garden, tools, and consumer electronics categories. Sears Domestic's home appliance category registered a low single digit comparable store sales increase for the quarter due to increases in sales of refrigeration and seasonal air movement products.
Operating Income
Holdings' operating income for the quarter was $5 million in 2010, as compared to an operating loss of $58 million in 2009. The increase in operating income of $63 million was primarily the result of an increase in our gross margin rate of 50 basis points. Selling and administrative expenses were slightly better than last year even though we incurred incremental expenses of $43 million related to our continued investment in our multi-channel capabilities and the launch of our Shop Your Way Rewards program, as well as an increase of $22 million due to changes in the Canadian foreign exchange rate. Operating income for the second quarter of 2010 and 2009, includes expenses of $37 million and $103 million, respectively, related to domestic pension plans, store closings and severance. The impact these items had on our operating income and earnings is summarized in the attached schedule, "Adjusted Earnings per Share," which provides a reconciliation from GAAP results to our adjusted earnings amounts, including adjusted earnings per diluted share.
For the quarter, we generated gross margin of $2.8 billion, which is $28 million more than last year. Gross margin dollars this year include an increase of $31 million related to the impact of foreign currency exchange rates on gross margin at Sears Canada and last year included a $17 million charge for markdowns recorded in connection with store closings. Gross margin remained relatively flat with last year, primarily due to an increase in gross margin rate at Kmart, which offset the slight decline in sales. Kmart's gross margin rate increased 230 basis points mainly due to reduced markdowns on apparel. The increase in Kmart's gross margin rate was partially offset by a decrease in gross margin rate of 40 basis points at Sears Domestic, primarily due to reduced margins in home services, and a decrease in gross margin rate of 150 basis points at Sears Canada.
Financial Position
We had cash balances of $1.2 billion at July 31, 2010 (approximately $500 million domestic and $700 million at Sears Canada), $1.3 billion at August 1, 2009 and $1.7 billion at January 30, 2010. Significant uses of our cash during the first half of 2010 include $560 million for the purchase of additional interest in Sears Canada, $273 million for share repurchases, repayments of long-term debt of $228 million, capital expenditures of $168 million, and contributions to our pension and post-retirement benefit plans of $122 million. These uses of cash were funded in part by an increase in short-term borrowings of $893 million.
Total debt (consisting of short-term borrowings, long-term debt and capital lease obligations) was $3.2 billion at July 31, 2010 and August 1, 2009. Total debt remained flat between years due to payments of $200 million made on long-term debt at Sears Canada, primarily offset by an increase in domestic short-term borrowing due to our first quarter 2010 acquisition of an additional interest in Sears Canada.
Share Repurchase
During the 13- and 26- week periods ended July 31, 2010, we repurchased common shares at a total cost of $272 million and $273 million, respectively, under our share repurchase program. Our repurchases for the 13- and 26- week periods ended July 31, 2010 were made at average prices of $75.57 and $75.61 per share, respectively. During the first half of fiscal 2010, we repurchased a total of 3.6 million shares. As of July 31, 2010, we had remaining authorization to repurchase $309 million of common shares under the share repurchase program. The share repurchases may be implemented using a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, the purchase of call options, the sale of put options or otherwise, or by any combination of such methods. Timing will be dependent on prevailing market conditions, alternative uses of capital and other factors.
Adjusted EBITDA
For purposes of evaluating operating performance, we use an Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") measurement computed as net loss attributable to Sears Holdings Corporation appearing on the statements of operations excluding income attributable to noncontrolling interest, income tax benefit, interest expense, interest and investment income, other income (loss), depreciation and amortization and gains/losses on sales of assets. In addition, it is adjusted to exclude certain significant gains/losses. Our management uses Adjusted EBITDA to evaluate the operating performance of our businesses, as well as executive compensation metrics, for comparable periods. Adjusted EBITDA should not be used by investors or other third parties as the sole basis for formulating investment decisions as it excludes a number of important cash and non-cash recurring items.
While Adjusted EBITDA is a non-GAAP measurement, management believes that it is an important indicator of operating performance because:
-- EBITDA excludes the effects of financing and investing activities by
eliminating the effects of interest and depreciation costs;
-- Management considers gains/losses on the sale of assets to result from
investing decisions rather than ongoing operations; and
-- Other significant items, while periodically affecting our results, may
vary significantly from period to period and have a disproportionate
effect in a given period, which affects the comparability of results.
Adjusted EBITDA was determined as follows:
13 Weeks Ended 26 Weeks Ended
-------------- --------------
August August
July 31, 1, July 31, 1,
2010 2009 2010 2009
---- ---- ---- ----
Net loss attributable
to SHC per statement
of operations $(39) $(94) $(23) $(68)
Income attributable to
noncontrolling
interest 5 8 6 16
Income tax benefit (19) (52) (4) (28)
Interest expense 69 63 136 122
Interest and investment
income (6) (14) (21) (19)
Other (income) loss (5) 31 9 47
--- --- --- ---
Operating income (loss) 5 (58) 103 70
Depreciation and
amortization 221 228 442 454
Gain on sales of assets (9) (5) (53) (59)
--- ---
Before excluded items 217 165 492 465
Domestic pension
expense 31 42 57 84
Closed store reserve
and severance 6 61 9 78
Adjusted EBITDA as
defined $254 $268 $558 $627
==== ==== ==== ====
% to revenues 2.4% 2.5% 2.7% 3.0%
Adjusted EBITDA for our segments are as follows:
13 Weeks Ended
--------------
Adjusted EBITDA % To Revenues
--------------- -------------
August
July 31, 1, July 31, August 1,
2010 2009 2010 2009
---- ---- ---- ----
Kmart $57 $14 1.6% 0.4%
Sears Domestic 121 160 2.1% 2.8%
Sears Canada (1) 76 94 6.6% 8.6%
--- --- --- ---
Total Adjusted EBITDA $254 $268 2.4% 2.5%
==== ==== === ===
(1) Second quarter EBITDA in Canadian dollars was $79 million in 2010
and $106 million in 2009.
26 Weeks Ended
--------------
Adjusted EBITDA % To Revenues
--------------- -------------
August
July 31, 1, July 31, August 1,
2010 2009 2010 2009
---- ---- ---- ----
Kmart $148 $62 2.1% 0.8%
Sears Domestic 287 426 2.6% 3.8%
Sears Canada (1) 123 139 5.6% 7.0%
--- --- --- ---
Total Adjusted EBITDA $558 $627 2.7% 3.0%
==== ==== === ===
(1) The first half EBITDA in Canadian dollars was $127 million in
2010 and $165 million in 2009.
Quarterly Report on Form 10-Q
For a detailed discussion of the Company's financial results, please see the Company's Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission and posted to the Company's website at .
Forward-Looking Statements
Results are preliminary and unaudited. This press release contains forward-looking statements about our expectations for the second quarter of fiscal 2010. Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: our ability to offer merchandise and services that our customers want, including our proprietary brand products; our ability to successfully implement initiatives to improve inventory management and other capabilities; competitive conditions in the retail and related services industries; worldwide economic conditions and business uncertainty, the availability of consumer and commercial credit, changes in consumer confidence, tastes, preferences and spending, and changes in vendor relationships; the impact of seasonal buying patterns, including seasonal fluctuations due to weather conditions, which are difficult to forecast with certainty; our dependence on sources outside the United States for significant amounts of our merchandise; our extensive reliance on computer systems to process transactions, summarize results and manage our business; our reliance on third parties to provide us with services in connection with the administration of certain aspects of our business; impairment charges for goodwill and intangible assets or fixed-asset impairment for long-lived assets; our ability to attract, motivate and retain key executives and other associates; the outcome of pending and/or future legal proceedings, including product liability claims, including proceedings with respect to which the parties have reached a preliminary settlement; and the timing and amount of required pension plan funding. We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available.
About Sears Holdings Corporation
Sears Holdings Corporation is the nation's fourth largest broadline retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, consumer electronics and automotive repair and maintenance. Sears Holdings is the 2010 ENERGY STAR庐 Retail Partner of the Year. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has the Country Living collection, which is offered by Sears and Kmart. We are the nation's largest provider of home services, with more than 12 million service calls made annually. Sears Holdings Corporation operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. For more information, visit Sears Holdings' website at www.searsholdings.com.
Sears Holdings Corporation
Consolidated Statements of Operations
(Unaudited)
Amounts are Preliminary and Subject to Change
13 Weeks Ended 26 Weeks Ended
-------------- --------------
July August July August
millions, except per share data 31, 1, 31, 1,
2010 2009 2010 2009
---- ---- ---- ----
REVENUES
Merchandise sales and services $10,458 $10,551 $20,504 $20,606
------- ------- ------- -------
COSTS AND EXPENSES
Cost of sales, buying and occupancy 7,635 7,756 14,851 14,938
Gross margin dollars 2,823 2,795 5,653 5,668
Gross margin rate 27.0% 26.5% 27.6% 27.5%
Selling and administrative 2,606 2,630 5,161 5,203
Selling and administrative expense
as a percentage of total revenues 24.9% 24.9% 25.2% 25.2%
Depreciation and amortization 221 228 442 454
Gain on sales of assets (9) (5) (53) (59)
Total costs and expenses 10,453 10,609 20,401 20,536
------ ------ ------ ------
Operating income (loss) 5 (58) 103 70
Interest expense (69) (63) (136) (122)
Interest and investment income 6 14 21 19
Other income (loss) 5 (31) (9) (47)
--- --- --- ---
Loss before income taxes (53) (138) (21) (80)
Income tax benefit 19 52 4 28
--- --- --- ---
Net loss (34) (86) (17) (52)
Income attributable to
noncontrolling interest (5) (8) (6) (16)
--- --- --- ---
NET LOSS ATTRIBUTABLE TO HOLDINGS'
SHAREHOLDERS $(39) $(94) $(23) $(68)
==== ==== ==== ====
LOSS PER COMMON SHARE ATTRIBUTABLE
TO HOLDINGS' SHAREHOLDERS
Diluted loss per share $(0.35) $(0.79) $(0.20) $(0.57)
Diluted weighted average common
shares outstanding 112.6 119.1 113.6 120.0
Sears Holdings Corporation
Condensed Consolidated Balance Sheets
Amounts are Preliminary and Subject to Change
(Unaudited)
-----------
July August January
millions 31, 1, 30,
2010 2009 2010
---- ---- ----
ASSETS
Current assets
Cash and cash equivalents $1,193 $1,189 $1,689
Restricted cash 6 103 11
Receivables 754 896 652
Merchandise inventories 9,430 9,377 8,705
Prepaid expenses and other current assets 378 422 381
--- --- ---
Total current assets 11,761 11,987 11,438
Property and equipment, net 7,485 7,867 7,709
Goodwill 1,392 1,392 1,392
Trade names and other intangible assets 3,173 3,244 3,208
Other assets 1,022 1,270 1,061
----- -----
TOTAL ASSETS $24,833 $25,760 $24,808
======= ======= =======
LIABILITIES
Current liabilities
Short-term borrowings $1,218 $1,015 $325
Current portion of long-term debt and
capitalized lease obligations 590 283 482
Merchandise payables 3,673 3,361 3,335
Unearned revenues 997 1,029 1,012
Accrued expenses and other current
liabilities 3,600 3,556 3,632
----- ----- -----
Total current liabilities 10,078 9,244 8,786
Long-term debt and capitalized lease
obligations 1,378 1,941 1,698
Pension and post-retirement benefits 2,172 2,045 2,271
Other long-term liabilities 2,586 2,883 2,618
----- -----
Total Liabilities 16,214 16,113 15,373
------ ------ ------
Total Equity 8,619 9,647 9,435
----- ----- -----
TOTAL LIABILITIES AND EQUITY $24,833 $25,760 $24,808
======= ======= =======
Total common shares outstanding 110.7 120.7 114.8
Sears Holdings Corporation
Segment Results
(Unaudited)
Amounts are Preliminary and Subject to Change
13 Weeks Ended July 31, 2010
----------------------------
millions, except store
data Kmart Sears Sears Sears
----- Domestic Canada Holdings
-------- ------ --------
Merchandise sales and
services $3,630 $5,674 $1,154 $10,458
------ ------ ------ -------
Cost of sales, buying
and occupancy 2,746 4,084 805 7,635
Gross margin dollars 884 1,590 349 2,823
Gross margin rate 24.4% 28.0% 30.2% 27.0%
Selling and
administrative 830 1,503 273 2,606
Selling and
administrative expense
as a 22.9% 26.5% 23.7% 24.9%
percentage of total
revenues
Depreciation and
amortization 36 160 25 221
Gain on sales of assets (1) (8) - (9)
Total costs and
expenses 3,611 5,739 1,103 10,453
----- ----- ----- ------
Operating income (loss) $19 $(65) $51 $5
=== ==== === ===
Number of:
Kmart Stores 1,309 - - 1,309
Full-Line Stores - 897 122 1,019
Specialty Stores - 1,335 316 1,651
Total Stores 1,309 2,232 438 3,979
===== ===== === =====
13 Weeks Ended August 1, 2009
-----------------------------
millions, except store
data Kmart Sears Sears Sears
----- Domestic Canada Holdings
-------- ------ --------
Merchandise sales and
services $3,756 $5,701 $1,094 $10,551
------ ------ ------ -------
Cost of sales, buying
and occupancy 2,927 4,082 747 7,756
Gross margin dollars 829 1,619 347 2,795
Gross margin rate 22.1% 28.4% 31.7% 26.5%
Selling and
administrative 845 1,532 253 2,630
Selling and
administrative expense
as a 22.5% 26.9% 23.1% 24.9%
percentage of total
revenues
Depreciation and
amortization 36 167 25 228
Gain on sales of assets (1) (3) (1) (5)
Total costs and
expenses 3,807 5,778 1,024 10,609
----- ----- ----- ------
Operating income (loss) $(51) $(77) $70 $(58)
==== ==== === ====
Number of:
Kmart Stores 1,352 - - 1,352
Full-Line Stores - 915 122 1,037
Specialty Stores - 1,282 267 1,549
Total Stores 1,352 2,197 389 3,938
===== ===== === =====
Sears Holdings Corporation
Segment Results
(Unaudited)
Amounts are Preliminary and Subject to Change
26 Weeks Ended July 31, 2010
----------------------------
millions, except store Sears Sears Sears
data Kmart Domestic Canada Holdings
----- --------- ------ ---------
Merchandise sales and
services $7,213 $11,109 $2,182 $20,504
------ ------- ------ -------
Cost of sales, buying
and occupancy 5,457 7,873 1,521 14,851
Gross margin dollars 1,756 3,236 661 5,653
Gross margin rate 24.3% 29.1% 30.3% 27.6%
Selling and
administrative 1,612 3,011 538 5,161
Selling and
administrative
expense as a 22.3% 27.1% 24.7% 25.2%
percentage of total
revenues
Depreciation and
amortization 72 320 50 442
Gain on sales of
assets (6) (47) - (53)
Total costs and
expenses 7,135 11,157 2,109 20,401
----- ------ ----- ------
Operating income
(loss) $78 $(48) $73 $103
=== ==== === ====
Number of:
Kmart Stores 1,309 - - 1,309
Full-Line Stores - 897 122 1,019
Specialty Stores - 1,335 316 1,651
Total Stores 1,309 2,232 438 3,979
===== ===== === =====
26 Weeks Ended August 1, 2009
-----------------------------
millions, except store
data Kmart Sears Sears Sears
----- Domestic Canada Holdings
-------- ------ --------
Merchandise sales and
services $7,349 $11,273 $1,984 $20,606
------ ------- ------ -------
Cost of sales, buying
and occupancy 5,662 7,907 1,369 14,938
Gross margin dollars 1,687 3,366 615 5,668
Gross margin rate 23.0% 29.9% 31.0% 27.5%
Selling and
administrative 1,659 3,060 484 5,203
Selling and
administrative
expense as a 22.6% 27.1% 24.4% 25.2%
percentage of total
revenues
Depreciation and
amortization 72 333 49 454
Gain on sales of
assets (10) (4) (45) (59)
Total costs and
expenses 7,383 11,296 1,857 20,536
----- ------ ----- ------
Operating income
(loss) $(34) $(23) $127 $70
==== ==== ==== ===
Number of:
Kmart Stores 1,352 - - 1,352
Full-Line Stores - 915 122 1,037
Specialty Stores - 1,282 267 1,549
Total Stores 1,352 2,197 389 3,938
===== ===== === =====
Sears Holdings Corporation
Adjusted EBITDA
Amounts are Preliminary and Subject to Change
13 Weeks Ended
--------------
millions July 31, 2010
-------------
Kmart Sears Sears Sears
----- Domestic Canada Holdings
-------- ------ --------
Operating income (loss) per
statement of operations $19 $(65) $51 $5
Depreciation and amortization 36 160 25 221
Gain on sales of assets (1) (8) - (9)
--- --- --- ---
Before excluded items 54 87 76 217
Closed store reserve and severance 3 3 - 6
Domestic pension expense - 31 - 31
Adjusted EBITDA as defined $57 $121 $76 $254
=== ==== === ====
% to revenues 1.6% 2.1% 6.6% 2.4%
26 Weeks Ended
--------------
millions July 31, 2010
-------------
Kmart Sears Sears Sears
----- Domestic Canada Holdings
-------- ------ --------
Operating income (loss) per
statement of operations $78 $(48) $73 $103
Depreciation and amortization 72 320 50 442
Gain on sales of assets (6) (47) - (53)
--- --- --- ---
Before excluded items 144 225 123 492
Closed store reserve and severance 4 5 - 9
Domestic pension expense - 57 - 57
Adjusted EBITDA as defined $148 $287 $123 $558
==== ==== ==== ====
% to revenues 2.1% 2.6% 5.6% 2.7%
13 Weeks Ended
--------------
millions August 1, 2009
--------------
Kmart Sears Sears Sears
----- Domestic Canada Holdings
-------- ------ --------
Operating income (loss) per
statement of operations $(51) $(77) $70 $(58)
Depreciation and amortization 36 167 25 228
Gain on sales of assets (1) (3) (1) (5)
--- --- --- ---
Before excluded items (16) 87 94 165
Closed store reserve and severance 30 31 - 61
Domestic pension expense - 42 - 42
Adjusted EBITDA as defined $14 $160 $94 $268
=== ==== === ====
% to revenues 0.4% 2.8% 8.6% 2.5%
26 Weeks Ended
--------------
millions August 1, 2009
--------------
Kmart Sears Sears Sears
----- Domestic Canada Holdings
-------- ------ --------
Operating income (loss) per
statement of operations $(34) $(23) $127 $70
Depreciation and amortization 72 333 49 454
Gain on sales of assets (10) (4) (45) (59)
--- --- --- ---
Before excluded items 28 306 131 465
Closed store reserve and severance 34 36 8 78
Domestic pension expense - 84 - 84
Adjusted EBITDA as defined $62 $426 $139 $627
=== ==== ==== ====
% to revenues 0.8% 3.8% 7.0% 3.0%
Sears Holdings Corporation
Adjusted Earnings per Share
Amounts are Preliminary and Subject to Change
13 Weeks Ended July 31, 2010
----------------------------
millions, except Closed
per share data GAAP Domestic Store
Reserve
---- Pension and
Expense Severance
------- ---------
Selling and
administrative
impact $2,606 (31) (6)
Operating income
impact 5 31 6
Other income
impact 5 - -
Income tax
benefit impact 19 (12) (2)
Noncontrolling
interest impact (5) - -
After tax and
noncontrolling
interest
impact (39) 19 4
Diluted loss per
share impact $(0.35) $0.17 $0.04
13 Weeks Ended August 1, 2009
-----------------------------
millions, except Closed
per share data GAAP Domestic Store
Reserve
---- Pension and
Expense Severance
------- ---------
Cost of sales,
buying and
occupancy
impact $7,756 $- $(17)
Selling and
administrative
impact 2,630 (42) (44)
Operating loss
impact (58) 42 61
Other loss
impact (31) - -
Income tax
benefit impact 52 (16) (23)
Noncontrolling
interest impact (8) - -
After tax and
noncontrolling
interest
impact (94) 26 38
Diluted loss per
share impact $(0.79) $0.22 $0.32
26 Weeks Ended July 31, 2010
----------------------------
millions, except Closed
per share data GAAP Domestic Store
Reserve
---- Pension and
Expense Severance
------- ---------
Cost of sales,
buying and
occupancy
impact $14,851 $- $(2)
Selling and
administrative
impact 5,161 (57) (7)
Gain on sales of
assets impact (53) - -
Operating income
impact 103 57 9
Other loss
impact (9) - -
Income tax
benefit impact 4 (21) (3)
Noncontrolling
interest impact (6) - -
After tax and
noncontrolling
interest
impact (23) 36 6
Diluted loss per
share impact $(0.20) $0.32 $0.06
26 Weeks Ended August 1, 2009
-----------------------------
millions, except Closed
per share data GAAP Domestic Store
Reserve
---- Pension and
Expense Severance
------- ---------
Cost of sales,
buying and
occupancy
impact $14,938 $- $(17)
Selling and
administrative
impact 5,203 (84) (61)
Gain on sales of
assets impact (59) - -
Operating income
impact 70 84 78
Other loss
impact (47) - -
Income tax
benefit impact 28 (29) (26)
Noncontrolling
interest impact (16) - (2)
After tax and
noncontrolling
interest
impact (68) 55 50
Diluted loss per
share impact $(0.57) $0.46 $0.41
13 Weeks Ended July 31, 2010
----------------------------
As
millions, except per share data Mark-to- Adjusted
Market
Losses ---------
-------
Selling and administrative
impact - $2,569
Operating income impact - 42
Other income impact (8) (3)
Income tax benefit impact 2 7
Noncontrolling interest impact 1 (4)
After tax and noncontrolling
interest impact (5) (21)
Diluted loss per share impact $(0.05) $(0.19)
13 Weeks Ended August 1, 2009
-----------------------------
As
millions, except per share data Mark-to- Adjusted
Market
Losses ---------
-------
Cost of sales, buying and
occupancy impact $- $7,739
Selling and administrative
impact - 2,544
Operating loss impact - 45
Other loss impact 22 (9)
Income tax benefit impact (6) 7
Noncontrolling interest impact (6) (14)
After tax and noncontrolling
interest impact 10 (20)
Diluted loss per share impact $0.08 $(0.17)
26 Weeks Ended July 31, 2010
----------------------------
Gain on
millions, except per share data Mark-to- Sales of As Adjusted
Market Real
Losses Estate -----------
------- -------
Cost of sales, buying and
occupancy impact $- $- $14,849
Selling and administrative
impact - - 5,097
Gain on sales of assets impact - 35 (18)
Operating income impact - (35) 134
Other loss impact 2 - (7)
Income tax benefit impact (1) 13 (8)
Noncontrolling interest impact - - (6)
After tax and noncontrolling
interest impact 1 (22) (2)
Diluted loss per share impact $0.01 $(0.20) $(0.01)
26 Weeks Ended August 1, 2009
-----------------------------
Gain on
millions, except per share data Mark-to- Sales of As Adjusted
Real
Market Estate ----------
Losses -------
------
Cost of sales, buying and
occupancy impact $- $- $14,921
Selling and administrative
impact - - 5,058
Gain on sales of assets impact - 44 (15)
Operating income impact - (44) 188
Other loss impact 36 - (11)
Income tax benefit impact (9) 11 (25)
Noncontrolling interest impact (10) 12 (16)
After tax and noncontrolling
interest impact 17 (21) 33
Diluted loss per share impact $0.14 $(0.17) $0.27
First Call Analyst:
FCMN Contact:
SOURCE: Sears Holdings Corporation
CONTACT: Sears Holdings Public Relations, +1-847-286-8371
Web Site: