• Q3 net loss up 7.2% to US$534m
  • Revenues down 6.6% to $8.3bn
  • Domestic comparable store sales fall 3.1%

Retail group Sears Holdings Corporation recorded higher losses in the third quarter as the transition of the business continued, with sales and margins also suffering.

The 6.6% revenue decrease, the company said, was primarily due to there being fewer Kmart and Sears full-line stores, alongside a 3.1% fall in comparable store sales.

Kmart’s gross margin rate was down 160 basis points, with declines reported in most categories, and particularly apparel, while further falls in apparel sent Sears Domestic’s margin rate down 230 basis points.

Meanwhile, Sears Canada margins fell by 240 bsis points in the three months to 2 November.

“We are transitioning from a business that has historically focused on running a store network into a business that provides and delivers value by serving its members in the manner most convenient for them: whether in store, in home or through digital devices,” said Edward Lampert, Chairman and CEO. 

“While transformations of this scale are challenging, we believe we are making progress as we are seeing substantive continued increases in our SYW [You’re your Way?] member engagement metrics.”