Sears Holdings reported its 4Q earnings for the year 2014 on Thursday 2015 along with its full year earning report which was seemingly disappointing for the investors. The company has been seeing a decline for quite some time now, with the 4Q of 2014 adding one more unsatisfactory quarter to the previous ten quarters that have consistently reported a decrease in earnings.
The loss recorded in 4QFY14 came around at $159 million which was observed to be a lesser loss as compared to the same quarter of 2013, in which a loss of $358 million was disclosed. However, losses for the year have seen an increase from $1.4 billion to $1.7 billion as compared to the year before 2014.
The multi-national firm declared its 4Q earning in a report on Thursday to have amounted up to $125 million which was seen to have risen for the first time since the last quarter of 2012. These earnings of the company, however, were the actual earnings before the subtraction of tax, interest, and depreciation.
The company's revenue witnessed a fall of 24% to 1.8 billion. Financial analysts, on the other hand, had expected the loss to be of $1.87 on the capital of $8.31 billion.
Shareholders of Sears faced a loss of $1.50 per share, which previously was a loss of $3.58 in the 4Q of 2013. The total loss from the decline in price of diluted shares was $15.82, a widened amount from $12.87 which was the loss recorded in the fiscal year of 2013.
As for the sales of the company in the fourth quarter, an evident fall was recorded in which the sales came around at $8.1 billion as compared to the previous sales of $10.6 billion. As for the yearly report, the downfall of the sales was seen from $36.2 billion to $31.2 billion.
Due to the consistent decline in the company's stature, Sears Holdings has been closing down its stores for the past year in order to transform its conventional departmental stores into a personalized way to shop, supported by a special membership, called Shop Your Way. The American company has also reduced its ownership of Sears Canada due to the fall in revenue generation and sales.
The reason Sears Holdings (NASDAQ:SHLD) managed to narrow down its previously increasing losses was due to better insurance policies and asset configuration as well as improved advertisements and marketing. The company is further expecting and working towards making its sales better and get through this struggling financial time gradually.
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