Thursday, January 9, 2014

Will Sears recover, or will it follow Montgomery Ward?

Jonathan Langdale shared a Business Insider summary of a Sears press release. Key takeaway:

The retailer sees Q4 adjusted loss of $2.01-$2.98. Analysts were looking for earnings of $0.26 per share.

Hence the premature advisory from Sears, who ordinarily wouldn't announce anything about earnings until late February.

I have to admit that the combination of Sears (who was losing out to other retailers) and KMart (who was losing out to Walmart) didn't seem to promise a viable combined firm.

It may be premature to pronounce an R.I.P. for Sears - they still have cash and a credit line - but if you're about to retire, don't put all your money in Sears stock.
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