Sears Holdings Corp. said Monday that a gain from the spinoff of
some of its real estate will likely drive its first profit in three
years, though the retailer said sales continued to slide in its
second quarter.
Sears completed the spinoff 235 of its properties into a
real-estate investment trust, Seritage Growth Properties, in July
in a move to raise cash.
The retailer expects to book a total gain of $1.4 billion from
the spin off, with $510 million recognized in the second quarter.
Sears also said the sale triggered a tax benefit of $240
million.
For the period ended Aug. 1, Sears said it expects to post a
profit of $1.46 to $1.92 a share.
Meanwhile, Sears said sales at stores open at least 12 months
slid 10.6% through July 25. Same-store sales at Sears domestic
stores fell 13.9%, while Kmart logged a 6.9% decline.
The declines are in-line with results from the first
quarter.
Backing out consumer electronics, Sears said same-store sales
would have been down 9.1%.
Sears expects to report results for the quarter on Aug. 20.
Sears has been slashing costs and selling off assets to bolster
its cash position in the face of declining sales and shopper
traffic.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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