SHOS Q2 sales fall 12%
Sears Hometown and Outlet (SHOS) store reported second quarter 2018 net sales fell 12% to $431 million from net sales of $490 million in the second quarter of 2017.
The Hoffman Estates, Ill.-based retailer also reported a net loss of $9.3 million for the quarter, compared to a net loss of $29.4 for the same period a year ago.
Comparable store sales increased 0.9% for the quarter while sales at SearsHometown.com soared 158.0% compared to second quarter 2017. Commercial sales increased 33.1% compared to the second quarter 2017.
SHOS remodeled and converted 22 Hometown stores to the retailer’s new Core Store format during the quarter. The company also said it conducted an initial pilot of the format in 2017 in three stores. The format is designed to build on the success of SHOS’s America's Appliance Experts program through focus on the non-appliance categories in the stores.
During the quarter, SHOS also opened a Buddy’s Home Furnishings store, bringing total openings to 6 since January 2018. The rent-to-own stores have been opened as franchisees. Buddy's Home Furnishings is the third largest rent-to-own operator in the United States with over 330 locations nationwide. Its principal owner, Vintage Capital Management, LLC, reached an agreement in the second quarter 2018 to acquire Rent-A-Center, Inc.
SHOS said it plans to open 3 additional Buddy's Home Furnishings locations before the end of its 2018 fiscal year.
During the second quarter, the company recorded a $7.6 million charge associated with the closure of 109 under-performing Hometown stores, which includes $0.8 million of closed-store impairment charges. As of August 4, 2018, the closure of 98 of these stores was complete, and the remaining 11 stores are expected to be closed in the third quarter.
As of Aug. 4, SHOS and its independent dealers and independent franchisees operated a total of 783 stores across 49 states as well as in Puerto Rico and Bermuda.
The Hoffman Estates, Ill.-based retailer also reported a net loss of $9.3 million for the quarter, compared to a net loss of $29.4 for the same period a year ago.
Comparable store sales increased 0.9% for the quarter while sales at SearsHometown.com soared 158.0% compared to second quarter 2017. Commercial sales increased 33.1% compared to the second quarter 2017.
SHOS remodeled and converted 22 Hometown stores to the retailer’s new Core Store format during the quarter. The company also said it conducted an initial pilot of the format in 2017 in three stores. The format is designed to build on the success of SHOS’s America's Appliance Experts program through focus on the non-appliance categories in the stores.
During the quarter, SHOS also opened a Buddy’s Home Furnishings store, bringing total openings to 6 since January 2018. The rent-to-own stores have been opened as franchisees. Buddy's Home Furnishings is the third largest rent-to-own operator in the United States with over 330 locations nationwide. Its principal owner, Vintage Capital Management, LLC, reached an agreement in the second quarter 2018 to acquire Rent-A-Center, Inc.
SHOS said it plans to open 3 additional Buddy's Home Furnishings locations before the end of its 2018 fiscal year.
During the second quarter, the company recorded a $7.6 million charge associated with the closure of 109 under-performing Hometown stores, which includes $0.8 million of closed-store impairment charges. As of August 4, 2018, the closure of 98 of these stores was complete, and the remaining 11 stores are expected to be closed in the third quarter.
As of Aug. 4, SHOS and its independent dealers and independent franchisees operated a total of 783 stores across 49 states as well as in Puerto Rico and Bermuda.