Dec 8 Sears Holdings Corp
* CFO in presentation - over the past several years, have
significantly reduced the size of our consumer electronics
* Since inception, have invested over $2 billion in shop
your way membership program in terms of points redeemed by
* Q3 gross margin drop due to declining performance in
apparel and home appliance, more markdowns; including increase
in Shop Your Way points expense
* Reliance on vendor funding and their exposure to sears
holdings has been reduced significantly
* CFO- "believe that we have the resources to fund our
transformation and meet all of our financial obligations"
* CFO- will continue to accelerate closing of
underperforming stores and reduce investment in underperforming
* CFO in presentation - "We cannot guarantee when we will
return to profitability"
* CFO - in the past quarter, have reduced the size of
pharmacy business which operates in many Kmart stores
* Reducing investment in lower margin categories, improved
sourcing and pricing initiatives designed to drive more profit
* CFO- " have ongoing discussions on our liquidity and
financial position with vendor community, and 3rd parties that
offer credit protection to our vendors"
* CFO- "we have a significant asset base which we believe
could be monetized to generate liquidity"
* CFO- "have over 400 owned stores and large portfolio of
leases at below market rents that can be monetized to support
* CFO- we continuously evaluate our store base and expect
that we will continue to close unprofitable stores
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