* Third-quarter revenue falls 6 pct to $8.86 bln
* U.S. same-store sales fall 3.1 percent
* Shares down 6 percent after the bell
By Arpita Mukherjee and Chris Peters
Nov 15 Sears Holdings Corp reported a
smaller-than-expected quarterly loss, but poor demand for
popular consumer electronic products took a toll on its
same-store sales, triggering a 6 percent fall in the retailer's
The growing popularity of smartphones as a multi-purpose
device is eating into the sales of other best-selling electronic
items such as digital cameras, MP3 players and camcorders,
leading to a fall in their prices.
"The retail industry continues to change dramatically and
rapidly. It will never go back to what it was and we have seen
the consequences for those that have not changed fast enough,"
Chief Executive Louis D'Ambrosio said on a conference call with
Same-stores sales at J.C. Penney, which are located
next to Sears in most malls, fell 26.1 percent in its most
recent quarter, its worst drop since CEO Ron Johnson began his
radical transformation of the department store chain earlier
U.S. same-store sales at Sears, which is controlled by hedge
fund manager Edward Lampert, fell 3.1 percent, including a 1.6
percent decline at Sears' namesake department stores and a 4.8
percent fall at Kmart.
Sears Canada's comparable store also fell 5.7
percent due to slowing demand for snow throwers, men's and
women's apparel, and home decor.
Sears has been closing stores, tightly managing inventory,
selling some real estate and shedding assets to turn its
Sears spun off its Orchard Supply Hardware Stores unit in
December. In February, it announced plans to sell some prime
real estate and spin off its Sears Hometown and Outlet
businesses and certain hardware stores. In May, it said it would
spin off a large chunk of its stake in its Canadian unit, Sears
The company's third-quarter net loss from continued
operations widened to $498 million, or $4.70 per share, from
$410 million, or $3.85 a share, a year earlier.
On an adjusted basis, the loss was $1.99 per share.
Analysts on average had expected a loss of $2.18 per share,
according to Thomson Reuters I/B/E/S.
Sales fell 6 percent to $8.86 billion as it shuts
underperforming stores. Analysts expected sales of $8.59
Sears shares, which have fallen more than 9 percent in the
past year, were down at $55.25 after market. They closed at
$58.48 on the Nasdaq on Thursday.