New Sears CEO Lou of Ambrosio has a lot of work to do.
But with the weakening sales appliance, a small resurgence hesitant Kmart and Sears stores continually behind, where to begin?
The answer, analysts say, is the same that it is for years: inject funds into the disgruntled stores all closing ballants locations, refresh brands such as Kenmore and bring new brands to attract consumers.
Ambrosio was named top company spot in February. He took the reins after three years without a CEO standing Sears. Income had declined for four consecutive years, 53 billion in 2007 to 43 billion in 2011.
On Thursday, Sears reported a loss of greater than expected in the first quarter of $ 170 million, or $ 1.58 per share, compared to a net profit of 16 million, or 14 cents per share, a year earlier. Adjusted loss was $1.39 per share.
Revenue for the period ending 30 April fell 3% to 9.71 billion.
Analysts surveyed by FactSet predicted a small loss of 99 cents per share on revenue of $ 9.73 billion.
Sears stock fell $1.99 or 2.6%, to $73.86 Thursday.
Sears has more than 4,000 stores in the United States and the Canada, but he chose to buy back stock instead of spend to rehabilitate areas, according to analyst Brian Sozzi strategies of Wall Street.
Hoffman Estates, Ill., company said Thursday it has bought stock in the first quarter $ 101 million.
Sears would have had the money and used for the improvement of store lighting and expand offerings of food to Kmart to follow with competitors.
"Kmart gets their butts kicked in foods of the target and Wal-Mart," said Sozzi.
Income in Kmart stores open at least a year fell by 1.6% in the quarter, partly due to declining sales of food.
Target Corp., which announced its first quarter results on Wednesday, made larger grocery items in its stores one of its priorities. And Wal-Mart Stores Inc. is replenish their grocery store in its locations where the elements were drawn when he was trying to clean its stores.
Both say that their core customers are focused on necessities such as food as the gasoline prices crimp spending.
Also need to refresh are trademarks of the retailer, Sozzi called "stale."
Sears brands include Kenmore, craftsman and DieHard, while its clothing brands include Jaclyn Smith, Joe Boxer and land.
Lands end Sears is strong, said Craig Johnson consulting clients partners in growth, but is relevant to only a part of Sears customers. It is tiny compared to the whole society, which is not violate revenue separately for it.
Johnson said that the company should play to the strengths of its brands, but that his house and the articles of clothing have very "little relevance".
Kmart also took a hit when Martha Stewart left the fold. Partnership with discount chain domesticity maven was completed in early 2010.
Since then, Home Depot Inc. has expanded its relationship with Stewart, who has paid with best patio furniture sales, said Sozzi.
Sears strives to bring new brands. It is set to launch the Kollection Kardashian this year, which will sell shoes, clothing, lingerie and accessories. It remains to see if the name of the stars of reality TV will result in sales.
Analysts questioned why anyone would want to in partnership with a company that is clearly in difficulty.
"If you're a hot brand that you will reduce your brand be associated with," said Johnson.
"Sears must mean something on the market," said Sozzi. "I don't really know what (they) stand for at this time.".
Some even ask if the D'Ambrosio, with no experience of retail sale, is the right person to address the list of tasks, including the Edward Lampert-hedge fund billionaire, President of Sears and majority shareholderlooking over his shoulder.
Johnson, said: "the ship not be adjusted without changing the master and the mate."
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