by James Quinn
Even as the worst run retailer in America inches ever closer to bankruptcy the Wall Street shysters and the captured MSM continue to tout this piece of shit retailer as a good investment. I looked at their income statement and balance sheet. Here are the lowlights:
Published: Dec 4, 2014 6:46 a.m. ET
Sears Holdings Corp.’s loss widened in its October quarter on a 13% drop in revenue, as the one-time fixture of the U.S. retail landscape continues to dismantle itself in an attempt to shore up its finances.
The results, however, came in above Wall Street’s expectations.
In recent years, Eddie Lampert, Sears’s chairman and chief executive, has sought to refocus the retailers operations, spinning off business lines like Lands’ End and assets like a big stake in Sears Canada to the company’s shareholders. Sears has recently turned to a spate of financing moves that leaned heavily on Mr. Lampert’s hedge fund in an effort to raise much-needed cash.
The efforts came as Sears worked to reassure vendors that have been rattled by its financial performance ahead of the holiday season, when retailers typically spend heavily securing inventory for the key selling season. Euler Hermès Group SA, which insures suppliers against nonpayment from retailers, told policyholders that it would cancel coverage on Sears, and vendor finance providers have tightened terms, vendors have said.
http://www.marketwatch.com/story/sears-loss-widens-but-tops-wall-street-views-2014-12-04
Even as the worst run retailer in America inches ever closer to bankruptcy the Wall Street shysters and the captured MSM continue to tout this piece of shit retailer as a good investment. I looked at their income statement and balance sheet. Here are the lowlights:
- Revenue plunged by 13% ($1.1 billion) as the company dismantles itself, selling off the only decent businesses like Lands End.
- Gross margin declined by 1.1% as they keep cutting prices to move their Chinese produced crap.
- They only lost $628 million versus ONLY $547 million last year in one quarter. Year to date, this fine retailer has lost $1.65 billion after nine months. They are guaranteed to lose more than $1 billion in the 4th quarter, as they spiral towards bankruptcy.
- Their balance sheet is a disaster. They have burned through $700 million of cash in 9 months and only have $300 million left.
- They have $2.1 BILLION of debt due within 12 months.
- They have slashed their inventory by 28% since last year. That bodes well for 4th quarter sales.
- They now have $4.9 BILLION of debt and $126 MILLION of equity. Sounds like a great investment.
- They still owe their retired workers $1.3 BILLION in pension and healthcare benefits.
Sears loss widens, but tops Wall Street views
By Chelsey DulaneyPublished: Dec 4, 2014 6:46 a.m. ET
Sears Holdings Corp.’s loss widened in its October quarter on a 13% drop in revenue, as the one-time fixture of the U.S. retail landscape continues to dismantle itself in an attempt to shore up its finances.
The results, however, came in above Wall Street’s expectations.
In recent years, Eddie Lampert, Sears’s chairman and chief executive, has sought to refocus the retailers operations, spinning off business lines like Lands’ End and assets like a big stake in Sears Canada to the company’s shareholders. Sears has recently turned to a spate of financing moves that leaned heavily on Mr. Lampert’s hedge fund in an effort to raise much-needed cash.
The efforts came as Sears worked to reassure vendors that have been rattled by its financial performance ahead of the holiday season, when retailers typically spend heavily securing inventory for the key selling season. Euler Hermès Group SA, which insures suppliers against nonpayment from retailers, told policyholders that it would cancel coverage on Sears, and vendor finance providers have tightened terms, vendors have said.
http://www.marketwatch.com/story/sears-loss-widens-but-tops-wall-street-views-2014-12-04
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