UPDATE: Sears Posts Narrower Q4 Loss

Sears Holding Corp. SHLD reported a narrower loss in the fourth quarter. The Hoffman Estates, Illinois-based company posted a quarterly loss of $159 million, or $1.50 per share, versus a year-ago loss of $358 million, or $3.37 per share. Excluding certain charges, Sears reported a loss of $0.34 per share. Its revenue declined 24% to $8.1 billion. However, analysts were estimating a loss of $1.87 per share on revenue of $8.31 billion. Comparable store sales slipped 4.4% in the US. Kmart comparable store sales dropped 2.0% in the quarter, while Sears domestic comparable store sales slipped 7.0%. Gross margin declined $504 million to $2.0 billion in the quarter, while selling and administrative expenses slipped $611 million year-over-year. Domestic adjusted EBITDA rose $217 million versus the year-ago quarter to $125 million in the fourth quarter. At January 31, 2015, Sears had cash balances of $250 million and merchandise inventories of $4.9 billion. Edward S. Lampert, Sears Holdings' Chairman and Chief Executive Officer said, "While we clearly believe that we can improve upon these results, we are pleased with the positive trend that started in the third quarter, and we currently expect this level of improvement to carry forward into our full year 2015 results. We believe that the changes we are making to focus on our best stores, reward our best members and pursue our best categories will help us continue to transform Sears Holdings into a leading integrated membership-focused company." Sears shares fell 1.33% to close at $37.90 yesterday.