Sears (NASDAQ: SHLD) reported a third quarter loss of about $558 million following the recent closures of more than 400 stores. Despite this loss, investors still had hope and raised forecasts which lead to an increase in stock at 10.33% to $4.64. Sears is hoping to increase their “shop online pick up in store” options to generate more business and is revamping their “Shop Your Way” loyalty program to lure in more shoppers.
Sears’ third quarter sales fell 15.3% with store locations reporting a 17% decline and Kmart stores falling at 13% as well. The closure of multiple Kmart pharmacies was part of the reason why there was a 27.2% decline in revenue to $3.66 billion. Sears claims to have remain focused on streamlining their operations, right sizing store footprints, limiting operating expenses, and taking further actions to improve financial performance.
Rob Riecker, Chief Financial Officer of Holdings, said, "The recently announced agreement with the Pension Benefit Guaranty Corporation requires an initial upfront payment to the pension plans which will be secured by 138 properties released to the Company. Once complete, the estimated contributions of $550 million to the pension plans in 2018 and 2019 is eliminated (with the exception of a $20 million payment in July of 2018). Additionally we will be taking action in the near term with respect to certain upcoming debt maturities to provide the Company with further financial flexibility and enhanced liquidity."