More paring on the horizon at Sears Holdings
Furniture Today Staff -- Furniture Today, October 30, 2013
Hoffman Estates, Ill. - While announcing the sale of five Sears Canada units yesterday, parent company Sears Holdings indicated it may shave off a few more U.S. Sears and Kmart units as their leases expire, and it raised the possibility of spinning off its Lands' End and Sears Auto Center businesses.
Same-store sales are tracking down for the third quarter, which will conclude Nov. 2. For the 12 weeks through Oct. 26, the company said consolidated comp was down 3.7%, with same-store sales declining 4.8% for Sears U.S. and 2.6% for Kmart.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is expected to range between negative $250 million to $300 million versus the prior year's quarter Adjusted EBITDA of negative $156 million.
Separating Lands' End and Sears Auto Centers would make Sears Holdings easier to manage, the company said in a statement. In addition, it "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."
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