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Stock Market & Financial Investment News

News Breaks
January 10, 2014
12:53 EDTSHLDSears dives after negative preannouncement
Shares of Sears (SHLD) are tumbling after the retailer's fourth quarter earnings guidance came in below analysts' expectations. WHAT'S NEW: Sears last night estimated that its fourth quarter loss per share excluding certain items would be ($2.01)-($2.98), versus analysts' consensus estimate for a loss of (20c). Moreover, the retailer stated that its U.S. comparable store sales for the fourth quarter had fallen 7.4%, versus the same period a year earlier. Comparative sales at the company's Kmart stores dropped 5.7%, while comp sales at its U.S. Sears stores tumbled 9.2%. ANALYST REACTION: In a note to investors, Credit Suisse analyst Gary Balter called Sears Holdings earnings shockingly bad and warned that the retailer is losing market share. Given the market share losses and Sears' decision to sell off its strongest performing stores, the company has little chance of mounting a successful turnaround, Balter believes. Moreover, the company is reducing the value of its assets by $10-$14 per share each year it continues to operate, according to Balter. Suppliers are likely becoming concerned about Sears' situation, according to the analyst, who kept an Underperform rating on the shares. PRICE ACTION: In early afternoon trading, Sears sank $4.80, or 11.3%, to $37.75.
News For SHLD From The Last 14 Days
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April 17, 2014
12:13 EDTSHLDSears director Thomas Tisch buys 475,000 shares
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April 13, 2014
17:45 EDTSHLDLand's End shares could head lower, Barron's says
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April 11, 2014
14:26 EDTSHLDCBL & Associates expects more J.C. Penney closures
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April 7, 2014
07:01 EDTSHLDEquity One names David Lukes as next CEO
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April 5, 2014
19:03 EDTSHLDSears completes Land's End spin-off, receives $500M in gross proceeds
Sears Holdings (SHLD) announced that its pro-rata spin-off of Lands' End (LE) from Sears Holdings closed on April 4. Lands' End has now been separated from Sears Holdings and its common stock is expected to begin regular-way trading on the Nasdaq Capital Market under the symbol LE on April 7. Sears Holdings will continue to be listed on the Nasdaq Global Select Market under the symbol SHLD. Sears Holdings received aggregate gross proceeds from the spin-off of $500M, consisting of a cash dividend paid by Lands' End prior to the spin-off to a subsidiary of Sears Holdings. In the spin-off, Sears Holdings distributed a total of approximately 32M shares of Lands' End common stock to the holders of Sears Holdings common stock as of 5:30 p.m. Eastern time on March 24, the record date. Each share of Sears Holdings common stock outstanding as of the record date entitles the holder thereof to receive 0.300795 shares of Lands' End common stock, except that holders of Sears Holdings' restricted stock that was unvested as of the record date will receive cash awards in lieu of shares. In addition, as part of the spin-off, Lands' End entered into an asset-based senior secured revolving credit facility, which provides for maximum borrowings of approximately $175M with a letter of credit sub-limit, and a senior secured term loan facility of approximately $515M. The proceeds of the term loan facility were used to pay the $500M dividend to the Sears Holdings subsidiary and to pay fees and expenses associated with the foregoing facilities of approximately $10M, with the remaining proceeds to be used by Lands' End for general corporate purposes.

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