The report is out. Just the basics :
395 million dollar loss, bringing the annual loss to 866 million so far.
Cash balance of 276 million.
ESL (Eddie Lampert) gave them another loan of 300 million and they are working on getting another 200 million.
They sold real estate and other assets for 176 million.
Yes, but they "beat" Wall Street's analyst's projections so it's a win. 2008 is never going to end.
Fraud.
Today alone Sears lost $4 million- same as every day.....
What is "Fast Eddie" pulling? What is he getting for the additional hedge fund loan? Are Eddie's loans secured with company real estate/leases? Are Eddie's loans superior to the general creditors when the BK happens? Not "if" but "when?"
From what I am hearing today from a source who is tight with people in the regional leadership, there are actually no plans to close Kmarts right now. I guess they are just planning on letting them rot in unsafe conditions with no employees. It shows how the subhuman slugs are. Absolutely no regard for their employees or customers. Yet they have the audacity to refer to them as "members".
Doesn't matter what they close same on same stores are down 5.5% - as a retailer you are dead with those numbers. Don't forget debt of $3.5 billion pension deficit of $2.5 billion, a pension contribution needed this year of $400 million - assets of maybe $1.5 billion and losses every year of $1.5 billion - doesn't take a genius to work out it cannot survive for very long.
It is a death spiral until those poorly performing stores are closed and the leases no longer drains on the company.
I agree with the "Death Spiral" remark.
The pre-recorded conference call is usually much more interesting than the one page press release.
So they said they secured $1.4 billion of financing in the first half of the year - extra loans selling assets etc- and the losses have taken a huge chunk of that - they had $532 million left only - but have saddled the company with more loan interest and less assets- also this month of August the losses will have been at least $100 million. By end of October there will be nothing to show for the $1.4 billion- unreal
It's an awful set of results- sales decline of 3.3% for Kmart and 7% for Sears and these are supposed to be the better performing stores!
Death spiral.