Sears Hometown & Outlet Stores: The Q4 Rundown

Q4 net sales: $298.6 million, down 6.7%
Q4 net income (loss): ($30.3 million)
Q4 comps: down 8.5%

FY net sales: $1.450 billion, down 15.7%
FY net income (loss): ($53.5 million)
FY comps: down 4.6%

Analysis: Sears Hometown & Outlet Stores was up against an extra calendar week in the prior year and prior quarter. Also, the company faced significant supply-chain cost increases and Craftsman and Kenmore merchandise availability issues – particularly in the Hometown segment – hometown stores, hardware stores and home appliance showrooms. The company said that these increases and issues are continuing, and it believes they will worsen during the next several quarters.

From the CEO: “The quarter was also our fourth consecutive quarter, and our sixth in the last seven quarters, with improved adjusted EBITDA compared to the same period in the prior year,” said Will Powell, CEO and president. “We were able to post these improved adjusted EBITDA results despite the distractions and headwinds associated with the Sears Holdings bankruptcy proceedings, which had a direct negative impact on our results.”

Latest Store Count: There are a total of 677 stores in the company, 90% operated by franchisees.

Link to Q4 earnings press release: Click here.

Recent news: Plans for store closings announced in December. Read here.

More background: An Appliance Push for Sears Hometown & Outlet Stores.