Sears Holdings reports sales decline, Kmart comps flat in Q2
HOFFMAN ESTATES, Ill. — Kmart comparable-store sales were flat, and Sears U.S. sales declined by 1.2% during second quarter 2011, according to an earnings report released Thursday.
Kmart's sales were $3.6 billion during the quarter, flat to second quarter 2010, while Sears Holdings as a whole had sales of $10.3 billion, down from $10.5 billion in second quarter 2010. The company had losses of $146 million, compared with $39 million in losses in second quarter 2010. Still, Kmart — which had 1,304 stores as of July 30 — experienced increases in sales in several categories, including pharmacy and drugs.
"We are not satisfied with our results and are taking actions to turn around our performance in a challenging economic environment," Sears Holdings president and CEO Lou D'Ambrosio said. "While we improved our revenue trend, including growing our online business by over 30%, we had lower gross margins."