Sears to Close at Least 50 More Stores

The struggling retailer’s shares were down 8 percent at $15.42 in afternoon trading on Tuesday.

The company attributed the poor fourth-quarter performance to “historically warm weather and intense competition pressuring margins and driving comparable-store sales declines”, especially in its apparel and soft-lines categories.

Total revenue is expected to fall 9.9 percent, to $7.3 billion, and comp sales are projected to decline 7.1 percent, comprised of a 7.2 percent drop at Kmart and a 6.9 percent slip at Sears stores.

The company estimated sales of $7.3-billion for the three months ended January 31, just short of analysts’ average estimate of $7.43-billion, according to Thomson Reuters I/B/E/S.

In addition to announcing this aggressive move to cut costs, Sears acknowledged the weakness in its apparel sales and said it is moving to improve that.

November and December are crucial for many retailers as the two months can account for anywhere between 20-40 percent of annual sales.

The company has reported a drop of 7.1% in sales at its established stores during the holiday shopping quarter, hurt from weak demand for its apparel a business, which has a significant impact on the overall profitability.

Sears keeps pruning its business in a years-long makeover, a bid to transform itself from a 123-year-old retail store into a nimble, 21st century operator.

Sears Holdings will release its official fiscal 2015 fourth-quarter and full-year results on or about February 25.

Last year, the company sold around 235 Sears and Kmart branded properties to Seritage Growth Properties, a real-estate investment trust (REIT), raising roughly $2.5 billion in the process, and it’s been dropping underperforming locations like flies.

Like other retailers, the company plans to put more focus on its digital market, using less physical space, and acquiring a membership model.