Sears Holdings Issues Q4 Update, Shares Dip Lower

Shares of Sears Holdings Corp SHLD were trading lower by nearly 3 percent early Tuesday morning after the company provided an update to its fourth quarter results which are scheduled to be released on February 25. Sears expects to report revenue of $7.3 billion in the fourth quarter and $25.1 billion for the full year fiscal 2015. Wall Street analysts Sears expects to report its fourth quarter Adjusted EBITDA to be between a loss of $100 million and $50 million, compared to an Adjusted EBITDA of $125 million in the same quarter a year ago. Sears also guided its fourth quarter comparable store sales to be lower by 7.1 percent and lower by 9.2 percent in the full fiscal year. January 2016's comparable store sale performance was negative 4.5 percent. Finally, Sears announced it will accelerate the closing of unprofitable stores and take stops to optimize store-level marketing expenditures and overall staffing levels. The company hopes to reduce its fixed costs and improve its inventory management and gross margin realization.