Amid a beaten down retail environment in North America, this week’s Q1 winner is Sears Holdings Corp. (SHLD), while peers Lowe’s Companies Inc. (LOW) and Chico’s FAS Inc. (CHS) faced another sell-off as they struggle with declining brick-and-mortar traffic.
The owner of Sears and Kmart stores saw it shares jump 30% on Thursday morning, cooling off in the afternoon, up 13.5% at a price of $8.48 per share. The Hoffman Estates, Ill.-based company posted a positive first quarter surprise before market open, in which a loss of of $2.15 per share came in above the Street’s forecasts for a loss of $3.05 per share. Q1 revenue declined 20% to $4.3 billion, as sales at established stores sank 11.9%. Analysts had forecasted a sales decline of 24.8% to $4.05 billion. Moving forward, the company committed to additional spending cuts to offset its rapidly declining commerce, trade.
“While this was certainly a challenging quarter for our company, it was also one that clearly demonstrated our commitment to return Sears Holdings to solid financial footing,” said Chairman Eddie Lampert. “We recognize that we need to accelerate our efforts to improve our operational performance and are moving decisively with our $1.25 billion restructuring program.” (See also: Sears Closing More Stores Than It Projected.)
Mooresville, N.C.-based domestic improvement and appliance store chain Lowe’s saw its stock dip approximately 3% on weaker-than-expected first quarter earnings posted early Wednesday. Poor expense controls took a bite out of profits, as the North American retailer posted earnings of $1.03 on a per-share basis, compared to the Street’s forecasts for $1.06. Q1 revenue of $16.9 billion came in line with analysts’ expectations, while same-store sales rose 1.9%, versus the consensus for a 2.6% increase. Lowe’s weak report contrasted to a solid beat by larger competitor domestic Depot Inc. (HD), as the firm boosts its digital presence, customer service and product offerings.
Fort Myers, Fla.-based women’s clothing and accessories retailer Chico’s saw its shares plummet 11% on Wednesday after reporting disappointing quarterly earnings. Earnings of $0.26 per share fell short of the Street’s expectations for $0.29, while revenue was down 9.2% to $583.7 million missed estimates for $625.4 million. Comparable sales declined 8.7%, dragged down by the firm’s namesake brand and its White House Black Market chain. CEO Shelley Broader highlighted a “challenging environment,” promising to execute a “strategic contrivance to increase profitable sales and long term earnings.”