Sears Holdings Q3: not as bad as expected

Sears Holdings reported a third-quarter loss, though one not as wide as economists expected.

As the retailer has been posting months of consecutive losses and sales declines, CEO Edward Lampert stressed the steps it was taking to minimize its expenses and generate more revenue.

"We remain intently focused on delivering an unparalleled integrated retail experience for our customers through Shop Your Way and above all, returning Sears Holdings to profitability," said Lampert. "During the quarter, we unveiled or expanded several Integrated Retail customer initiatives, which helped drive online and multi-channel sales. Our members are responding to our transformation, and we are encouraged by the year-over-year domestic adjusted EBITDA trends, which mark a positive departure from the prior six quarters. At the same time, we continue to enhance the company's capital structure and liquidity to support our transformation into an integrated membership-focused company."

Revenues for the third quarter ended Nov. 1 decreased to $7.2 billion, compared to $8.3 billion in the same period last year. Sears pointed to growth in its online and multi-channel sales of approximately 9%.

Meanwhile, Sears Holdings posted a net loss of $548 million; during the same period last year, its loss was $534 million.

The domestic adjusted EBITDA figures Lampert mentioned came in at a loss of $296 million for the quarter, an improvement over last year's loss of $310 million.

Through various cost-cutting actions such as shutting stores (235 year-to-date), selling leases and spinning of various divisions, the company has generated $2.2 billion in liquidity in fiscal 2014 so far, according to Sears Holdings CFO Rob Schriesheim.

Additionally, the company said it was no longer consolidating the results of Sears Canada as of Oct. 16, and that its third-quarter report does not take Sears Canada into account.

Sears Holdings continues to maintain that it has the ability to meet its financial obligations. The retailersaid it had about $1.5 billion available in its credit facility as of Dec. 3, 2014.