Sears Holdings Corp. (SHLD) continues to lose customers, reporting a comparable sales decline of 15.6% in its fourth-quarter financial update.
In the 14-week period that ended on Feb. 3, 2018, Sears saw a 12.2% comp sales drop for its Kmart stores and an 18.1% dip at Sears, the company disclosed in an Securities Exchange Commission filing on Thursday, Feb. 15.
It estimated that revenue totaled $4.4 billion for the quarter, compared to $6.1 billion in the same period last year. The company, nonetheless, had some good news: it expects a fourth-quarter Ebitda of between negative $10 million and positive $10 million, compared to an Ebitda of negative $61 million in 2016.
As Sears seems to be making good on its goal of breaking even by the end of 2018, shares are rising nearly 4% Thursday morning, trading at $2.38. On Monday, Feb. 12, the stock dipped to $1.99, an all-time low.
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"This year-over-year improvement continues to demonstrate that the restructuring actions taken in 2017, including the closure of unprofitable stores, have resulted in meaningful improvement in our performance," the company said.
Sears also highlighted its recent credit transactions in the announcement Thursday, including $357 million of new financing since the beginning of the year. It underscored $1.25 billion in annualized cost savings in 2017, which can be attributed to "simplifying...organizational structure, streamlining operations, reducing unprofitable categories and the closure of underperforming stores," the company said.
More than 350 Sears and Kmart stores closed in 2017, according to Fung Global Retail & Technology's store closure tracker. So far this year, the chain announced the shuttering of 103 additional locations.
Of its $3.3 billion in total debt, Sears CEO Eddie Lampert and his affiliates are the lenders on five loans with an outstanding balance of more than $1.5 billion.