Struggling retailer Sears Holdings managed to narrow losses in its fourth-quarter, despite booking a drop in revenues.
Net losses amounted to $358 million in the three months to February 1. This compares to net losses of $489 million in the prior year period. The improvement was helped by store closures and garnering more business via its loyalty program.
Gross margin decreased $681 million to $2.5 billion as a result of a $1.7 million decline in sales to $10.6 billion.
Revenues were down primarily due to lower domestic comparable store sales, in addition to having fewer Kmart and Sears Full-line stores in operation.
CEO Edward Lampert said: “Looking ahead, we will continue to enhance our financial flexibility to support and drive our transformation. While transformations of this size are challenging, and our financial results do not currently reflect our progress in member engagement, we believe the changes we are making through Shop Your Way and integrated retail will benefit us in the changing retail landscape.”
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