Article basically says Sears is burning through cash, revenues are down 10% from last year, The analysts say that Sears must make up ground during back to school and especially Xmas to stay around.
"Heavy losses in the second fiscal quarter, things are not looking good for Sears Holdings. These losses are up nearly $400 million since the same time last year, and with only $1 billion in cash and holdings Sears is having a hard time staying afloat. They are quickly burning through $715 in net cash from operations for the first six months this year and with another $116 million of capital assets left, they are quickly losing ground—at the rate of approximately $150 million per month.
This means that Sears could easily run out of money in the next eight months; Fitch Ratings has downgraded their credit from double C to triple C, putting it at the lowest possible end of the credit spectrum for retailers.
But can Sear’s hold through the back to school season and make up solid ground as the holiday approaches? Time, as they say, will tell—and time is probably the only thing Sears has less of than money.
Still, CEO Eddie Lampert managed to generate another $665 million in liquidity selling both Land’s End and some unnecessary real estate but that isn’t going to be enough to continue through the rest of the year.
Revenues fell last year by 10 percent, a fair decline for the longstanding retailer. Some of that could be accounted for from spinning off Land’s End and closing a few stores, yes, but Kmart—a partner—continues to slip—breaking just above even last year.
So with only a few months of revenue remaining in a franchise that is hemorrhaging cash and in a down market that is particularly tough this year, can Sears make it to Christmas? If they can, it will be their best hope at restoring their business."
http://www.thepncvoice.com/sears-gone-slump-lasts-christmas/36617
"Heavy losses in the second fiscal quarter, things are not looking good for Sears Holdings. These losses are up nearly $400 million since the same time last year, and with only $1 billion in cash and holdings Sears is having a hard time staying afloat. They are quickly burning through $715 in net cash from operations for the first six months this year and with another $116 million of capital assets left, they are quickly losing ground—at the rate of approximately $150 million per month.
This means that Sears could easily run out of money in the next eight months; Fitch Ratings has downgraded their credit from double C to triple C, putting it at the lowest possible end of the credit spectrum for retailers.
But can Sear’s hold through the back to school season and make up solid ground as the holiday approaches? Time, as they say, will tell—and time is probably the only thing Sears has less of than money.
Still, CEO Eddie Lampert managed to generate another $665 million in liquidity selling both Land’s End and some unnecessary real estate but that isn’t going to be enough to continue through the rest of the year.
Revenues fell last year by 10 percent, a fair decline for the longstanding retailer. Some of that could be accounted for from spinning off Land’s End and closing a few stores, yes, but Kmart—a partner—continues to slip—breaking just above even last year.
So with only a few months of revenue remaining in a franchise that is hemorrhaging cash and in a down market that is particularly tough this year, can Sears make it to Christmas? If they can, it will be their best hope at restoring their business."
http://www.thepncvoice.com/sears-gone-slump-lasts-christmas/36617
