The big news is that Sears is evaluating spinning off both its Lands’ End business and its Sears Auto Centers. Here is what the company had to say:
We believe separating the management of these two businesses from Sears Holdings would allow them to pursue their own strategic opportunities, optimize their capital structures, attract talent, and allocate capital in a more focused manner while bringing our business unit structure to life outside of the Sears Holdings portfolio.
Lands’ End is typically thought of as one of the company’s most attractive brands, but in 2012 it shared the responsibility for 120 basis point drop in Sears’ domestic gross margin. It also shared the blame for a 180 basis point drop in 2011.
A spin-off of Lands’ End would not be a sale, but some sort of spin-off to Sears shareholders. The company said it is now evaluating strategic alternatives for its Auto Centers, which it is trying to reposition around non-tire-related services.
Sears Canada will sell five store leases to a Canadian firm for a total price of CDN$400 million (about $383 million). Sears owns a 51% stake in Sears Canada.
Shares of Sears were up about 7% in mid-morning trading Tuesday, at $59.44 in a 52-week range of $38.40 to $68.77.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.