NEW YORK (TheStreet) -- Shares of Sears Holding Corp.
(SHLD) are down -2.89% to $34.91 in pre-market trade after the company indicated more cost cuts and changes are on the way as it posted a $573 million quarterly loss amid declining revenue and margins, the Wall Street Journal reports.
Sears said slumping electronics sales continued to weigh on results, as did margin-squeezing costs from promotions.
Sears is now relying on its membership program and online business to drive sales while its turnaround grinds on, the Journal said.
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Sears said today that it may close more stores this year in addition to the 130 closures it has already announced. The company has trimmed its store count to 1,870 over the past 12 months, closing 166 locations in the process.
Sears also said it continues to evaluate spinning off its auto-center business and divesting itself of its 51% stake in Sears Canada.
TheStreet Ratings team rates SEARS HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEARS HOLDINGS CORP (SHLD) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."
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