HOFFMAN ESTATES, Ill. (June 8, 2005) — In its first quarter following the merger of Sears, Roebuck and Co. and Kmart Corp., Sears Holdings Corp. reported a net loss of $9 million on sales of $7.63 billion.
The company said the results are gleaned from all 13 weeks of Kmart's results ending April 30 but only about five weeks of Sears' results from March 25 onward. The merger—which in practicality was a buyout of Sears by Kmart—was finalized March 24. For this reason, Sears Holdings said it does not believe the first quarter results are representative of the new company's ongoing results.
With the full Sears' results included, the company said its total revenue would have been $12.8 billion, though the loss would have deepened to $78 million, which includes merger costs.
Sears Holdings' stock price fell 8.7 percent to $141.50 after the report June 7.
The combined company ended the quarter with $30.6 billion in total assets and $19.4 billion in total liabilities. Sears Holdings said its store of $7.4 billion in cash and cash equivalents was reduced to $1.6 billion at the end of the first quarter primarily on $5.4 billion paid to former Sears shareholders.
Sears Holdings, based in Hoffman Estates, is now the nation's third largest retailer with about 2,300 full-line and 1,200 specialty retail stores in the U.S. operating as Kmart and Sears.