Sears Hometown and Outlet Stores saw net income for the second quarter drop to $9.1 million from $21.1 million a year earlier, due, in part, to expenses associated with its spinoff from Sears Holdings Corp, according to the company.
These results come a little more than a week after Sears Holdings saw revenues decrease to $8.9 billion for the quarter from $9.5 billion for the year-ago quarter. Fewer Kmart and Sears full-line stores accounted for approximately $210 million of that decline.
Revenue increased 2% to $656.9 million from $644.5 million. Same-store sales rose 1.4%, with an 8.2% increase for the chain’s outlet segment.
“We are adjusting pricing/promotional plans, enhancing Outlet sourcing capabilities, and focusing on higher margin categories and product lines to improve profitability,” CEO and president Bruce Johnson said. “Profitability was also affected by $6.4 million of expenses incurred as a result of operating as an independent public company, which were not incurred in the prior year.”
Sears Hometown and Outlet Stores also announced that its board approved a $25 million buyback.