Why Sears Shares Tumbled

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Sears Holdings (NASDAQ: SHLD  ) shares were getting sheared today, falling as much 18% after a dismal quarterly earnings report.

So what: The struggling retaile posted an adjusted first-quarter loss of $1.29 a share, a full $0.60 worse than analysts had expected. Revenue also fell 9% to $8.45 billion, though that slightly beat Wall Street expectations of $8.37 billion. Same-stores sales were down 3.6%.

Now what: The only question I have about Sears is why shares were so high to begin with. The chain has been grossly mismanaged by Eddie Lampert, who's chosen to run it as an financial asset rather than a retail business, and is one of many retailers that is getting squeezed by the vice grip of, Wal-Mart, and other industry giants. Sears is a dying brand, and the stock can only fall so far behind the company.

Think there's more to Sears? Add the company to your Watchlist  to stay up to date.

Read/Post Comments (2) | Recommend This Article (3)

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  • Report this Comment On May 25, 2013, at 10:13 AM, fisquid wrote:

    With the way Sears has been run for, oh, the past couple decades, it's shocking that they're still in business at all. People still buy Kenmore appliances and Craftsman tools, even though Sears is now mostly just putting their brand name on others' lackluster goods. It's hard to find a better example of a retailer shooting themselves in the foot, repeatedly, for years, and still not going out of business.

    Sears had a great name, loyal customers, and a solid reputation as a company that could be relied upon to deliver honest quality at a good value every time. When you've got that kind of goodwill, it'll take a while to kill they chain off. But they're trying. Boy, are they trying.

  • Report this Comment On May 26, 2013, at 3:50 PM, Broke4Barack wrote:

    And I liked Sears....did I say liked?

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Related Tickers

9/26/2016 4:00 PM
SHLD $10.99 Down -0.55 -4.77%
Sears Holdings CAPS Rating: *