Sears Posts Wider Than Expected Q3 Loss

December 2, 2008 4:31 p.m. EST

Chicago, IL (AHN) - Sears Holding Corp. announced Tuesday a larger than expected third quarter loss as revenue slumped with same-store sales sliding 9 percent.

The department store operator reported a net loss of $1.16 a share, compared to a profit of $4 million or 3 cents a share in the same period a year ago. Excluding one-time charges, Sears lost 96 cents a share.

Revenue slipped 8 percent to $10.66 billion, down from $11.62 billion last year. Same-store sales fell 10.6 percent at Sears stores and 7 percent at Kmart locations. Same-store sales were down 9 percent on a whole.

The results did not meet analyst expectations for a loss of 49 cents a share on $10.93 billion in revenue, according to Thomson Reuters.

Sears said it reduced domestic inventory by $575 million in the third quarter and cut administrative costs by $129 million during the quarter.

The company announced its Board of Directors approved an increase for share repurchases to $500 million. Sears repurchased roughly 1.2 million shares in November and now has about 123.6 million shares.

"After careful consideration and a review of the company's valuation, prospects, cash flow and liquidity, we believe that our shares represent an attractive investment for our shareholders," said interim CEO Bruce Johnson in a company statement.

Sears also said it will close eight under-performing stores in addition to the 14 that have already been closed as part of an ongoing review.

The company also announced that former Lehman Bros. Chief Administrative Office Scott Freidheim would fill the role of executive vice president of operating and support businesses.

Shares of Sears jumped 13 percent to $35.90 in Tuesday afternoon trading.