On Sears & Lands End: Retailer’s Profit Warning Signals a Persistent Slide

Gary McWilliams:

Sears Holdings Corp., the storied retailer that helped civilize the American frontier with its catalog sales and later defined the modern department store, is searching for a new compass.
The retailer yesterday warned results for its fiscal fourth quarter and year would fall well below its expectations, continuing a sharp slide in sales and profit. Even during the best two months of the year, sales at stores open at least a year fell 3.5% compared with a year ago, the company said. Shares tumbled 5% to a more than two-year low, down $4.79 to $91.38 on the Nasdaq. The stock is off 49% in the past year.
But its record in acquisitions has been dismal. In 2002, it paid $3 billion for mail-order firm Lands’ End, a business that has declined since the deal.

Lands End is based in nearby Dodgeville. The post Sears acquisition of Lands End is a story waiting to be told.