Investors just got another sign that Sears is doomed
Sears
Lands' End, a brand that's sold primarily in Sears' stores, reported a 14.3% drop in same-store sales in the third quarter.
The company blamed slowing shopper traffic at Sears for the drop.
"We ended the quarter with 219 shops at Sears and have continued to see weak traffic trends within malls and more specifically within our Sears locations," Lands' End Chief Financial Officer Jim Gooch said on an earnings call.
That's a troubling sign for Sears, which reports third-quarter earnings on Thursday, because Lands' End has tended to outperform Sears in same-store sales since it was spun off from the department-store chain in 2014.
Lands' End's same-store sales fell 9.3% last year, compared to an 11.1% drop at Sears stores.
In another ominous indicator for Sears, the company just lost two of its top executives last week.
And Sears Hometown and Outlet Stores, which was spun off from Sears Holdings in 2012 but continues to sell Sears merchandise, also reported dismal quarterly results.
The company said last week that net losses in the third quarter widened from $5.5 million last year to $93.2 million this year.
The losses were driven in part by a 49% drop in apparel sales. The company blamed Sears Holdings for the precipitous drop in apparel sales, citing the "continuing impact of significantly reduced inventory availability from Sears Holdings, our sole source for this category."
"We do not expect inventory availability to improve and, as a consequence, we plan to continue to de-emphasize, and eventually exit, this category," Sears Hometown and Outlets said.
NOW WATCH: 7 things you shouldn't buy on Black Friday
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- Reliance gets thumbs-up from S&P, Fitch as strong earnings keep leverage in check
- Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499
- 8 Fun things to do in Kasol
- SC rejects pleas seeking cross-verification of votes cast using EVMs with VVPAT
- Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market