(SHLD) Sears Holding Corporation – Bear of the Day

Sears Holdings Corp. (SHLD) disappoints with its overall second-quarter 2011 results. The company’s adjusted loss of $1.13 per share was well above the Zacks Consensus Estimated loss of $0.64 per share, while widening drastically from the prior-year quarter loss of $0.19 per share, primarily due to a sluggish top-line performance.

Management’s cost-cutting initiatives for boosting profits did not help; improvement in merchandise mix and customer services would have been a better option. Moreover, intense competition and exposure to adverse foreign currency translations may undermine the company’s future operating performance.

Furthermore, rising debt and declining cash and equivalents may adversely impact the company’s future expansion and operational activities. Currently, we are maintaining a long-term Underperform recommendation on the stock.

SEARS HLDG CP (SHLD): Free Stock Analysis Report

Zacks Investment Research

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