Sears reveals its biggest sales drop in history at its namesake stores --  but shares are soaring

Getty ImagesSears posted an 18.1% drop in same-store sales at its namesake stores over the holiday period.
  • Sears’ same-store sales at its namesake chain dropped a staggering 18.1% – the worst drop in recent history – over the holiday period.
  • The company said it expects revenue to be $US4.4 billion for the quarter, a decline from $US6.1 billion in revenue the previous year.
  • Sears is expecting to turn a profit, however, of between $US140 million to $US240 million, due in part to a boost from the new tax law.
  • Sears’ shares soared more than 16% Thursday afternoon.

Sears posted a staggering drop in same-store sales over the holiday period, but is expecting to turn a profit for the quarter.

Same-store sales, or sales at stores open at least a year, dropped 15.6% during the fourth quarter, including a 12.2% drop at Kmart and an 18.1% drop at Sears, the company said in a regulatory filing on Thursday.

The 18.1% decline is the worst same-store sales drop in history for Sears’ namesake stores.

The company said it expects revenue to be $US4.4 billion for the quarter, a drop from $US6.1 billion in revenue the previous year.

Sears is expecting to turn a profit, however, of between $US140 million to $US240 million. Sears said it expects to benefit somewhere between $US445 million and $US495 million from the new tax law.

The company said closing unprofitable stores has had a “meaningful improvement” in its overall performance.

Sears’ shares soared more than 16% in Thursday afternoon trading.

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