Sears Hometown and Outlet sales fall 15% in Q1
Sears Hometown and Outlet stores reported a first quarter 2018 net loss of $9.4 million, a 56% swing compared to a net loss of $21.4 million in the first quarter 2017.
The company also reported that net sales fell 15% to $381.3 million for first quarter 2018 from net sales of $448.2 million during the same period a year ago.
During the quarter the company closed 21 locations. The retailer said it “aggressively pursuing options” to exit locations that are deemed as “under-performing” and do not contribute a positive return.
In the second quarter, the retailer said it will close another 90 to 100 stores in the Hometown segment. About $25 to $28 million in inventory investments in these stores will used to pay down debt.
During the first quarter, Hometown comp sales fell 11.6% while consolidated comp store sales were down 10.5%.
Poor spring temperatures led to lawn and garden materially under-performing the comparable store sales average, contributing approximately 50% to Hometown's total comparable store sales dollar decline, the company reported.
Looking ahead, the company said the lease/rent-to-own business is “an important part of our future.” The company has opened 5 new Buddy’s Home Furnishings Rent-to-Own stores since January 2018 as a franchisee. Buddy’s is the third-largest rent-to-own dealer in the United States with 330 locations. Another 10 to 15 openings are planned for 2018.
Ecommerce grew in the first quarter with Sears Hometown and Outlet store reporting a 348% sales increase compared to the first quarter 2017.
The company also reported that net sales fell 15% to $381.3 million for first quarter 2018 from net sales of $448.2 million during the same period a year ago.
During the quarter the company closed 21 locations. The retailer said it “aggressively pursuing options” to exit locations that are deemed as “under-performing” and do not contribute a positive return.
In the second quarter, the retailer said it will close another 90 to 100 stores in the Hometown segment. About $25 to $28 million in inventory investments in these stores will used to pay down debt.
During the first quarter, Hometown comp sales fell 11.6% while consolidated comp store sales were down 10.5%.
Poor spring temperatures led to lawn and garden materially under-performing the comparable store sales average, contributing approximately 50% to Hometown's total comparable store sales dollar decline, the company reported.
Looking ahead, the company said the lease/rent-to-own business is “an important part of our future.” The company has opened 5 new Buddy’s Home Furnishings Rent-to-Own stores since January 2018 as a franchisee. Buddy’s is the third-largest rent-to-own dealer in the United States with 330 locations. Another 10 to 15 openings are planned for 2018.
Ecommerce grew in the first quarter with Sears Hometown and Outlet store reporting a 348% sales increase compared to the first quarter 2017.