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Sales, margins hit Sears Hometown Q1 net income
Hoffman Estates, Ill. — Sears Hometown and Outlet Stores Inc. had a difficult first quarter of fiscal 2014, reporting a substantial decline in net income as well as drops in net sales and same-store sales. Net income declined 75% to $3.7 million from $15 million.
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Unseasonably cold weather delivers challenging Q1 to Sears Hometown
Sears Hometown and Outlet Stores CEO and president Bruce Johnson cited weather and promotions as factors affecting the retailer’s first quarter results.
Net sales in the quarter decreased 1.9% to $589.9 million from $601.1 million in the first quarter of 2013, driven primarily by a 6.2% decrease in same-store sales. Lower initial franchise revenues and lower liquidation revenues on end-of-season mark-out apparel merchandise received from Sears Holdings also negatively impacted net sales.