expects to record a third-quarter charge of $75 million to $100 million as part of a plan to reorganize The Great Indoors, its chain of home decorating and remodeling stores.
The charge will cover expenses for closing three stores, converting a fourth store into an outlet format and asset impairment costs for certain stores and other real estate assets. Sears expects to complete the store closings by the end of the year.
The stores that will be closed are located in Arlington, Texas; Willowbrook, Texas; and Cincinnati. The store being converted into an outlet is in Shelby, Mich. Following the closings, The Great Indoors will operate 18 stores in 11 markets nationwide.
On July 17, Sears said it expected full-year earnings of $4.80 to $5 a share, excluding any impact from the sale of its credit and financial products business. The $75 million to $100 million charge isn't incorporated in the guidance.
Shares of Sears closed Wednesday at $43.65 on the
New York Stock Exchange