Sears Tries More Restructuring To Trump Bad Earnings (SHLD)

Sears Holdings Corporation (NASDAQ: SHLD) has reported earnings, but it is the restructuring efforts which are likely to get the most attention today.  The basics were adjusted earnings of $0.54 EPS on $12.5 billion in sales.  Thomson Reuters had estimates of $0.78 EPS and $12.44 billion in sales.  Kmart same-store sales were down 2.7% and the Sears ‘namesake’ brand stores saw a drop of 4.1% in same-store sales.

The company is trying to unlock value and sees raising $400 to $500 million from the spin-off of about 1,250 stores.  Of the spin-offs, these are said to include Outlet, Hometown, Hardware-Store businesses in a rights offering and the company expects to realize raising an additional $1 billion through all of the moves. And, yes there are layoffs expected.

Sears said that its total liquidity at the end of the quarter was more than $3.2 billion and that it has an additional $760 million available in a second-lien capacity and had access to an additional $1 billion through a credit facility at the end of 2011.

JON C. OGG