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Sears Holdings Corp. reported a 20 percent year-over-year revenue loss in its first-quarter financial results, which the company attributed to having fewer operational stores.
The struggling retailer also noted an 11.9 percent decline in comparable store sales. Kmart stores lost sales in the grocery and household, pharmacy, apparel and home categories, according to the company. Sears stores saw comparable sales decline due to sales losses in home appliances, apparel and lawn and garden.
The retailer also reported its first profit in two years due to the sale of the Craftsman tool brand to Stanley Black & Decker. The companies finalized the sale in March and added $741 million to Sears’ assets for the quarter.
Sears Holdings recently updated a strategic restructuring plan to cut $1.25 billion in costs to improve the company’s financial situation. Earlier this year, the company announced initial plans to decrease its expenses by $1 billion.
The company reports that it has already saved $700 million through store closures and restructuring its management teams. To achieve its updated goal of $1.25 billion in cost cuts, the company plans to close 92 pharmacy operations in Kmart stores and 50 Sears Auto Center locations.
“While this was certainly a challenging quarter for our company, it was also one that clearly demonstrated our commitment to return Sears Holdings to solid financial footing,” says chairman and CEO Edward S. Lampert. “We recognize that we need to accelerate our efforts to improve our operational performance and are moving decisively with our $1.25 billion restructuring program.”
Lampert recently told the Chicago Tribune that negative media attention has harmed the company’s public perception.
