Jump to content

SHLDQ - Sears Holdings Corp


alertmeipp

Recommended Posts

Interesting to see that Sears had positive comparable SSS in February, while a couple retailers (Gap and American Apparel) had big drops in SSS in February. 

 

I know it's only one month, but still interesting.

 

 

Where did you see the SSS?

Link to comment
Share on other sites

  • Replies 9.3k
  • Created
  • Last Reply

Top Posters In This Topic

On the SHLD conference call they said SSS were above last year at that point in the Quarter.  The call was on Feb. 27th, so I've assumed we can say SSS increased in Feb.

 

Here's the quote...

http://searsholdings.com/invest/docs/2013_Q4_Call_transcript.pdf

“So we did see an improvement in our comp sales through the month of January. While still early in the quarter, we are seeing positive domestic comparable store sales for the month of February for Sears’ full-line and Kmart formats combined.”

 

Link to comment
Share on other sites

Hahaha!  That's funny!

 

Has anyone been to the mall lately?  Any thoughts on how Sears is doing in the mall?

 

In my stops to locals malls this weekend I saw improved traffic at both JCP and Sears compared to the past year or two.  There were solid lines at both retailers.  At Sears, there's lots of people in the appliance section.  Better than typical traffic in the fitness equipment and lawnmower section, too. 

 

Time and again you'd see women with their arms full of clothes in the checkout line.  It's anecdotal, but the vibe felt different than usual.

 

(Please don't hate for giving my anecdotal take on SHLD.  Cheers!)

 

I'm expecting that the positive SSS trend continues for the rest of Q1. 

 

Link to comment
Share on other sites

Guest wellmont

lol - full disclosure, I was mocking Wellmont's SHLD bashing on Twitter every time the stock tanks. His latest reference was SHLD is a coiled slinky ready to spring down the stairs hahaha. Actually quite creative.

 

credit where credit is due.  8)  ;)

Link to comment
Share on other sites

Guest wellmont

my nutty srac bonds got marked up to $12.50. today. they were trading around $11 last week. the perception I think that things have bottomed out?

Link to comment
Share on other sites

Hahaha!  That's funny!

 

Has anyone been to the mall lately?  Any thoughts on how Sears is doing in the mall?

 

In my stops to locals malls this weekend I saw improved traffic at both JCP and Sears compared to the past year or two.  There were solid lines at both retailers.  At Sears, there's lots of people in the appliance section.  Better than typical traffic in the fitness equipment and lawnmower section, too. 

 

Time and again you'd see women with their arms full of clothes in the checkout line.  It's anecdotal, but the vibe felt different than usual.

 

(Please don't hate for giving my anecdotal take on SHLD.  Cheers!)

 

I'm expecting that the positive SSS trend continues for the rest of Q1.

 

I went by Alderwood Mall again this weekend, and Sears parking lot is about 95% full like last week. JCP's parking lot is similar.

Link to comment
Share on other sites

my nutty srac bonds got marked up to $12.50. today. they were trading around $11 last week. the perception I think that things have bottomed out?

 

Based on the hope that SSS will be positive henceforth perhaps? I hope I'm wrong, but positive SSS seems like a fantasy. Though Tesla/Solar City/FB/Whatsapp are based on fantasies too  ;D

Link to comment
Share on other sites

I am shopping for appliances, and impressed with sears customer reps than HD, and Lowes (more knowledgeable reps at sears).  All three retailers have display model, but not actual product on the floor (low priced items are available for delivery with in 2-3 days). Sears price was $150 lower than other two, and gave me $50 worth of points, but SEARS warranty and service contract way more expensive than HD, and Lowes ($500 vs 160), and Sears installation service $15 cheaper than Lowes . I bought a cooktop at sears online.

 

Link to comment
Share on other sites

I went by Alderwood Mall again this weekend, and Sears parking lot is about 95% full like last week. JCP's parking lot is similar.

 

 

Maybe Eddie's renting space at the Sears parking lot to AutoNation so they can store all their excess inventory.

Link to comment
Share on other sites

It's a damn shame that Sears is incinerating hundreds of millions of dollars annually on SYW.

 

This is a company that has a stunning amount of real estate. They once were free cash flow positive and were buying back stock like there was no tomorrow. SHLD once had 165 million shares. Eddie controlled about 50 million. SHLD repurchased shares down to 106 million, meaning Eddie repurchased literally one out of every two shares in existence that he didn't already control when he merged Sears & Kmart.... And he did this in a very short period of time. This was amazing. The real estate value on a per share basis was exploding higher, even as the company produced mediocre profits.

 

If SHLD were doing all of these real estate transactions just like they have been, but without Shop Your Way, and they were free cash flow positive, and they were buying back stock like they used to, there is no question that SHLD would be my largest position. Perhaps it would be a 50% position considering the lack of other opportunities out there. Today, I still own a large position, but it makes me sick to my stomach to even think about how much of a joke the company has become.

 

Maybe Eddie will have the last laugh in the end, but in my opinion, when you have something right there in front of you, all that real estate, people willing to pay you hundreds of millions just to cancel a lease, people willing to sublease all or part of stores, you have to go with it. Why waste all that money on SYW?  With the money he's burned on SYW he could have bought the share count down to 80 or 85 million shares. It's embarrassing. What the hell happened here?

 

 

Link to comment
Share on other sites

Look what happened to JCP when their core customers started leaving.  SYW might be cheap insurance against that outcome.

 

SYWis basically a loyalty program, similar to what many other companies are offering. Amazon has a credit card that offers discounts, Target has their red card, which offers a 5% discount (better than SYW), others offer coupons and discounts like Bed Bath and Beyond or Kohl's. I think SYW is just one way to for Sears and Kmart, to keep their customer shopping in their stored. I don't think it is a LT investment at all and if they would abandon it all of a sudden, their sales would probably drop even more, and the bottom line could look worse.

Link to comment
Share on other sites

You guys do not work in the corporate world.  I have seen many many documents that really says nothing and can be summed up in a paragraph!  :)

 

Tks,

S

 

 

+1

 

I can only imagine how painful the upcoming book would be to read...

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...