Sears stock is off a whopping 16% in early trading this morning.
Its sales continue to decline and it's not getting any lift from the troubles at J.C. Penney. Maybe we have two dinosaurs here, or even three if we count Kmart. When I reflect on all this, I think about the demise of Montgomery Wards as well.
Earlier in my career, they were the "big four" retailers. Free markets work that way. Get better or get out of the way, in other words.
Sears slumps after sales decline has the breaking news:
"Sears Holdings Corp. shares fell (~16%) to ~$49 on Friday after the company late
Thursday reported a 1.6% same-store sales drop at its Sears U.S. unit in the
third quarter and a 4.8% drop at the Kmart chain. In Canada, Sears's comparable
sales dropped 5.7%.
The company cited sluggish demand for items including
consumer electronics at its Sears chain. At Kmart, demand was hurt by lower
grocery and household item sales. Sears narrowed its adjusted loss, helped by
expense control.
Analysts said they were also disappointed that Sears didn't
appear to pick up any market share from its troubled rival J.C. Penney Co.,
which has seen declining sales amid a major merchandising and pricing change."
Summing Up
And that's the morning news from worry free Lake Wobegon.
Thanks. Bob.
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