Research Desk Line-up: Sears Hometown and Outlet Stores Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Sears Holdings Corp. (NASDAQ: SHLD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SHLD, following the Company's disclosure of its financial results on August 24, 2017, for the second quarter fiscal 2017 (Q2 FY17). The Hoffman Estates, Illinois-based Company sales declined on a year-over-year basis, while its net loss narrowed during the reported quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Department Stores industry. Pro-TD has currently selected Sears Hometown and Outlet Stores, Inc. (NASDAQ: SHOS) for due-diligence and potential coverage as the Company reported on September 06, 2017, its financial results for Q2 2017 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Sears Hometown and Outlet Stores when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SHLD; also brushing on SHOS. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=SHLD

http://protraderdaily.com/optin/?symbol=SHOS

Earnings Reviewed

Sears reported total revenue of $4.37 billion in Q2 FY17 compared to $5.66 billion recorded in Q2 FY16. However, total revenue numbers topped market forecasts of $4.21 billion. The Company's merchandise sales were down to $3.50 billion in Q2 FY17 from $4.65 billion in the year ago corresponding quarter. Services and other revenues also fell to $867 million in Q2 FY17 from $1.02 billion in Q2 FY16. Furthermore, the Company's comparable sales were down by 11.5% during the reported quarter compared to a decline of 5.2% in the previous year's comparable quarter.

The department store operator's net loss attributable to Sears narrowed to $251 million, or $2.34 loss per diluted share, in Q2 FY17 from net loss attributable to Sears of $395 million, or $3.70 loss per diluted share in Q2 FY16. The Company's non-GAAP net loss attributable to Sears stood at $125 million, or $1.16 loss per diluted share, for the reported quarter, which was lower than non-GAAP net loss attributable to Sears of $217 million, or $2.03 loss per diluted share, in Q2 FY16. Meanwhile, Wall Street had expected the Company to report non-GAAP net loss attributable to Sears of $2.48 per diluted share.

Operating Metrics

During the reported quarter, total cost of sales, buying, and occupancy came in at $3.39 billion compared to $4.40 billion in the year ago same quarter. The Company's total gross margin dollars stood at $971 million, or 22.2% of total revenues, for Q2 FY17 compared to $1.26 billion, or 22.2% of total revenues, in Q2 FY16. The Company incurred total costs and expenses of $4.47 billion in Q2 FY17 compared to $5.93 billion in Q2 FY16. The Company's operating loss was $106 million for Q2 FY17 versus operating loss of $269 million in Q2 FY16. Furthermore, the Company posted negative EBITDA of $67 million in Q2 FY17 compared to negative EBITDA of $191 million in Q2 FY16.

Sears' Segment-Wise

The Kmart Stores segment's revenues fell to $1.48 billion in Q2 FY17 from $2.22 billion in Q2 FY16. During the reported quarter, the segment's negative adjusted EBITDA was $1.0 million compared to negative adjusted EBITDA of $63 million in the quarter ended July 30, 2016. Furthermore, the number of Kmart Stores was down to 610 as on July 29, 2017, from 883 as on July 30, 2016.

During Q2 FY17, the Domestic segment reported total revenues of $2.89 billion compared to $3.44 billion in the last year's comparable quarter. The segment reported negative adjusted EBITDA of $66 million in Q2 FY17 versus negative adjusted EBITDA of $128 million in Q2 FY16. As on July 29, 2017, the Company had 619 Full-Line Stores and 21 Specialty Stores compared to 683 Full-Line Stores and 26 Specialty Stores as on July 30, 2016.

Cash Matters and Balance Sheet

During the six months ended July 29, 2017, net cash used in operating activities was $1.14 billion versus net cash used in operating activities of $640 million in the comparable year ago same period. Sears had total cash balances of $442 million at the close of its books on July 29, 2017, compared to $286 million as on January 28, 2017. The Company reduced its long-term debt during the six months, which stood at $2.41 billion as on July 29, 2017, compared to $3.57 billion as on January 28, 2017. Furthermore, the Company had merchandise inventories of $3.43 billion as on July 29, 2017, compared to $3.96 billion as on January 28, 2017.

Stock Performance

On Thursday, September 14, 2017, the stock closed the trading session at $7.58, slipping 1.43% from its previous closing price of $7.69. A total volume of 831.82 thousand shares have exchanged hands. Sears' stock price advanced 10.50% in the last three months. At Thursday's closing price, the stock's net capitalization stands at $842.14 million.

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